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r  r.  ff  \,  A  A 


LAWS  ON 
TRUSTS  AND  MONOPOLIES 

DOMESTIC  AND  FOREIGN 

WITH  AUTHORITIES 


COMPILED  UNDER  THE  DIRECTION  OF 

J.  J.  SPEIGHT 

CLERK   COMMITTEE    ON  THE   JUDICIARY 
HOUSE  OF  REPRESENTATIVES 

BY 

NATHAN  B.  WILLIAMS 

OF  THE  ARKANSAS  BAR 


PRINTED  FOR  THE  USE  OF  THE  COMMITTEE 


WASHINGTON,  D.  C.,  DECEMBER  1,  1913 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1918 


COMMITTEE  ON  THE  JUDICIARY, 

HOUSE  OF  REPRESENTATIVES. 

SIXTY-THIBD    CONGRESS. 


HENRY  b.  CLAYTON,  Alabama,  Chairman. 

EDWIN  Y.  WHBB,  North  Carolina.  JOHN  F.  CAREW,  New  York. 

CHARLES  C.  CARLIN,  Virginia.  JOHN  B.  PETERSON,  Indiana. 

JOHN  C.  FLOYD,  Arkansas.  JOHN  J.  MITCHELL,  Massachusetts. 

ROBERT  Y.  THOMAS,  Jr.,  Kentucky.  ANDREW  J.  VOLSTEAD,  Minnesota. 

H.  GARLAND  DUPRE,  Louisiana  JOHN  M.  NELSON,  Wisconsin. 

WALTER  I.  McCoY,  New  Jersey.  DICK  T.  MORGAN,  Oklahoma. 

DANIEL  J.  MCGILLICUDDY,  Maine.  HENRY  G.  DANFORTH,  New  York. 

JACK  BBALL,  Texas.  L.  C.  DYER,  Missouri. 

JOSEPH  TACOART,  Kansas.  GEORGE  S.  GRAHAM,  Pennsylvania. 

Louis  PITZHBNRY,  Illinois.  WALTER  M.  CHANDLER,  New  York. 

J.  J.  SPEIGHT,  'clerk. 


FABLE  OF  CONTENTS. 


Unless  otherwise  indicated,  references  are  to  Bevised  Statutes  or  codes  of 

the  several  States. 


Page. 
United  States 1-37 

Sherman  antitrust  law 1 

Act  of  August  15,  1894 a 

Act  of  February  12,  1913 5 

Act  of  February  4,  1887 6 

Act  of  February  11,  1903 7 

Joint  resolution  of  March  7,  1906 8 

Joint  resolution  of  March  21,  1906 10 

Act  of  June  25,  1910 11 

Judicial  Code,  January  1,  1912 13 

Act  of  February  25,  1903 13 

Act  of  February  14,  1903 14 

Act  of  June  13,  1906,  immunity  of  witnesses .-.--15 

Sundry  civil  bill,  March  4,  1913 16 

Panama  Canal  act,  August  24,  1912 17 

Naval  appropriation  bill,  March  4,  1913 .-,  20 

District  of  Columbia  appropriation  bill,  March  4,  1913 21 

Equity  rules,  Supreme  Court  United  States 23. 

Table  of  cases  decided  under  Sherman  law ,__• 24-34 

Resale  contracts,  cases 34-36 

Labor  cases 36 

Power  of  Congress  under  antitrust  act,  cases :. ; 37 

Alabama:  |;  ;v 

Constitution 39 

Statutes 39-4,2 

Court  decisions 42 

Arizona : 

Constitution 43 

Statutes „— — 43-47 

Arkansas: 

Constitution 49 

Statutes , 49-56 

Court   decisions 56 

California : 

Constitution 57 

Statutes 57-62 

Court  decisions 62 

in 

708913 


IV  TABLE   OF   CONTENTS. 

Colorado :  page. 

Constitution 63 

Statutes 63-66 

Connecticut : 

Constitution w__        67 

Statutes 67 

Court   decisions 67 

Delaware 69 

District  of  Columbia . 71 

Florida : 

Statutes 73 

Court  decisions 73 

Georgia : 

Constitution 75 

Statutes 75-78 

Court  decisions 78 

Idaho : 

Constitution 79 

Statutes 79-86 

Illinois: 

Statutes 87-94 

Court   decisions 94-96 

Indiana : 

Statutes 97-104 

Court   decisions 104 

Iowa: 

Statutes 105-108 

Court   decisions 108 

Kansas : 

Statutes 109-123 

Court  decisions : 123 

Kentucky : 

Constitution 125 

Statutes 125-130 

Court   decisions : 130 

Louisiana : 

Statutes : 131-135 

Court   decisions 135 

Maine : 

Statutes 137,138 

Maryland : 

Constitution 139 

Massachusetts : 

Statutes 141-147 

Court  decisions . 147 

Michigan: 

Constitution 149 

Statutes , 149-157 

Court  decisions 1 157 

Minnesota  : 

Statutes 159 

Court  decisions- _  160 


TABLE   OF   CONTENTS.  V 

Mississippi :  Page. 

Constitution 161 

Statutes 161-169 

Court  decisions - 169 

Missouri : 

Statutes 171-187 

Court  decisions - 187 

Montana : 

Constitution 189 

Statutes 189-192 

Court  decisions 1 192 

Nebraska : 

Constitution 193 

Statutes 193-209 

Court  decisions 209 

Nevada 211 

New  Hampshire: 

Statutes 213 

Court  decisions 213 

New  Jersey: 

Statutes : , 215-221 

Court  decisions 221 

New  Mexico: 

Statutes 223 

New   York: 

Statutes 225-228 

Court  decisions , 228 

North   Carolina : 

Statutes 231-240 

Court  decisions 240 

North  Dakota: 

Constitution 241 

Statutes 241-250 

Ohio: 

Statutes 251-256 

Court  decisions 256 

Oklahoma : 

Constitution 257 

Statutes 258-267 

Court  decisions 267 

Oregon : 

Court  decisions 269 

Pennsylvania : 

Court  decisions 271 

Rhode  Island: 

Court  decisions 273 

South  Carolina : 

Constitution 275 

Statutes 275-281 

Court  decisions 281 

South  Dakota: 

Constitution 283 

Statutes 283-288 

Court    decisions..  288 


VI  TABLE   OF   CONTENTS. 

Tennessee :  Page, 

Constitution 289 

Statutes 289,  290 

Court   decisions 290 

Texas : 

Constitution . 291 

Statutes 291-310 

Court    decisions 310 

Utah: 

Constitution 313 

Statutes 313-317 

Vermont : 

Statutes 319 

Virginia : 

Constitution 321 

Washington : 

Constitution 323 

West  Virginia 325 

AVisconsin : 

Statutes 327-331 

Court   decisions ^.C^ ^ 331 

Wyoming : 

Constitution 333 

Statutes 333,  334 

Foreign  countries 335-438 

Australia 335-354 

Canada 355-375 

Cape  of  Good  Hope 377-379 

Great  Britain 381-418 

Japan 419 

New  Zealand-  -  421-438 


LAWS  ON  TRUSTS  AND  MONOPOLIES,  DOMESTIC  AND 
FOREIGN,  WITH  AUTHORITIES. 


UNITED   STATES. 

STATUTES. 
THE  SHERMAN  ANTITRUST  LAW. 

[26  Stat.  L.,  209.    July  2,  1890.] 

AN  ACT  To  protect  trade  and  commerce  against  unlawful  re- 
straints and  monopolies. 

Be  it  enacted  ~by  the  Senate  and  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  as- 
sembled, Every   contract,   combination  in  the  form  of  Restraint  pro- 
hibited in  corn- 
trust  or  otherwise,  or  conspiracy,  in  restraint  of  trade  merce  between 

J  '  States  and  for- 

or  commerce  among  the  several  States,  or  with  foreign  eign  nations, 
nations,  is  hereby  declared  to  be  illegal.     Every  person 
who  shall  make  any  such  contract  or  engage  in  any  such 
combination  or  conspiracy,  shall  be  deemed  guilty  of  a 
misdemeanor,  and,  on  conviction  thereof,  shall  be  pun- Punishment, 
ished  by  a  fine  not  exceeding  $5,000,  or  by  imprisonment 
not  exceding  one  year,  or  by  both  said  punishments,  in 
the  discretion  of  the  court. 

SEC.  2.  Every  person  who  shall  monopolize,  or  attempt  ^nt°e^oly  pro" 
to  monopolize,  or  combine  or  conspire  with  any  other 
person  or  persons,  to  monopolize  any  part  of  the  trade 
or  commerce  among  the  several  States,  or  with  foreign 
nations,  shall  be  deemed  guilty  of  a  misdemeanor,  and,  on 
conviction  thereof,  shall  be  punished  by   fine  not   ex-  Punishment, 
ceeding  $5,000,  or  by  imprisonment  not  exceeding  one 
year,  or  by  both  said  punishments,  in  the  discretion  of 
the  court. 

SEC.  3.  Every  contract,  combination  in  form  of  trust  ^^  tPo10ter- 
or  otherwise,  or  conspiracy,  in  restraint  of  trade  or  com-  ritory  Invoived. 
inerce  in  any  Territory  of  the  United  States  or  of  the 
District  of  Columbia,  or  in  restraint  of  trade  or  commerce 
16491—13 1  1 


2 


LAWS   ON   TRUSTS  AND  MONOPOLIES. 


Conspiracy. 


OD- 


between  any  such  Territory  and  another,  or  between  any 
•such  Territory  or  Territories  and  any  State  or  States  or 
the  District  of  Columbia,  or  with  foreign  nations,  or  be- 
tween the  District  of  Columbia  and  any  State  or  States 
or  foreign  nations,  is  hereby  declared  illegal.  Every 
person  wrho  shall  make  any  such  contract  or  engage  in 
any  suc\i  combination  or  conspiracy,  shall  be  deemed 

Punishment,  guilty  of  a  misdemeanor,  and,  on  conviction  thereof,  shall 
be  punished  by  fine  not  exceeding  $5,000,  or  by  imprison- 
ment not  exceeding  one  year,  or  by  both  said  punish- 
ments, in  the  discretion  of  the  court. 

SEC.  4.  The  several  circuit  courts  of  the  United  States 
are  hereby  invested  with  jurisdiction  to  prevent  and 
restrain  violations  of  this  act;  and  it  shall  be  the  duty 
of  the  several  district  attorneys  of  the  United  States, 
in  their  respective  districts,  under  the  direction  of  the 
-  Attorney  General,  to  institute  proceedings  in  equity  to 
prevent  and  restrain  such  violations.  Such  proceedings 
may  be  by  way  of  petition  setting  forth  the  case  and 
praying  that  such  violation  shall  be  enjoined  or  other- 
wise prohibited.  When  the  parties  complained  of  shall 
have  been  duly  notified  of  such  petition  the  court  shall 
proceed,  as  soon  as  may  be,  to  the  hearing  and  determi- 
nation of  the  case  ;  and  pending  such  petition  and  before 

dersP°rary  01  final  decree,  the  court  may  at  any  time  make  such  tem- 
porary restraining  order  or  prohibition  as  shall  be 
deemed  just  in  the  premises. 

Additional  par-  SEC.  5.  Whenever  it  shall  appear  to  the  court  before 
which  any  proceedings  under  section  four  of  this  act 
may  be  pending,  that  the  ends  of  justice  require  that 
other  parties  should  be  brought  before  the  court,  the  court 
may  cause  them  to  be  summoned  whether  they  reside  in 
the  district  in  which  the  court  is  held  or  not,  and  sub- 
poenas to  that  end  may  be  served  in  any  district  by  the 
marshal  thereof. 

^EC*  ®'  ^^  Pr°Perty  owned  under  any  contract  or  by 
any  combination,  or  pursuant  to  any  conspiracy  (and 
being  the  subject  thereof)  mentioned  in  section  one  of 
this  act,  and  being  in  the  course  of  transportation  from 
one  State  to  another,  or  to  a  foreign  country,  shall  be 
forfeited  to  the  'United  States,  and  may  be  seized  and 
condemned  by  like  proceedings  as  those  provided  by 
law  for  the  forfeiture,  seizure,  and  condemnation  of 
property  imported  into  the  United  States  contrary  to 
law. 


F?oferture  °f 


UNITED   STATES. 

SEC.  7.  Any  person  who  shall  be  injured  in  his  business 
or  property  by  any  person  or  corporation  by  reason  of  Party 
anything  forbidden  or  declared  to  be  unlawful  by  this 
act,  may  sue  therefor  in  any  circuit  court  of  the  United 
States  in  the  district  in  which  the  defendant  resides  or  is 
found,  without  respect  to  the  amount  in  controversy, 
and  shall  recover  threefold  the  damages  by  him  sus- 
tained, and  the  cost  of  suit,  including  a  reasonable  at- 
torney's fee. 

SEC.  8.  That  the  word  "  person,"  or  "  persons,"  wher-  Definitions. 
ever  used  in  this  act  shall  be  deemed  to  include  corpora- 
tions and  associations  existing  under  or  authorized  by 
the  laws  of  either  the  United  States,  the  laws  of  any  of 
the  Territories,  the  laws  of  any  State,  or  the  laws  of  any 
foreign  country. 

[28  Stat.  L.,  570.     Aug.  15,  1894.] 

AN  ACT  To  reduce  taxation  and  provide  revenue  for  the  Gov- 
ernment, and  for  other  purposes. 

SEC.  73.  That  every  combination,  conspiracy,  trust,  public  policy, 
agreement,  or  contract  is  hereby  declared  to  be  contrary 
to  public  policy,  illegal,  and  void,  when  the  same  is  made 
by  or  between  two  or  more  persons  or  corporations  either 
of  whom  is  engaged  in  importing  any  article  from  any 
foreign  country  into  the  United  States,  and  when  such 
combination,  conspiracy,  trust,  agreement,  or  contract  is 
intended  to  operate  in  restrain  of  lawful  trade,  or  free 
competition  in  lawful  trade  or  commerce,  or  to  increase 
the  market  price  in  any  part  of  the  United  States  of  any 
article  or  articles  imported  or  intended  to  be  imported 
into  the  United  States,  or  of  any  manufacture  into  which 
such  imported  article  enters  or  is  intended  to  enter. 
Every  person  who  is  or  shall  hereafter  be  engaged  in  the  conspiracy  of 
importation  of  goods  or  any  commodity  from  any  for-  imP°rters- 
eign  county  in  violation  of  this  section  of  this  act,  or 
who  shall  combine  or  conspire  with  another  to  violate 
the  same,  is  guilty  of  a  misdemeanor,  and,  on  conviction 
thereof  in  any  court  of  the  United  States,  such  person  punishment, 
shall  be  fined  in  a  sum  not  less  than  $100  and  not  exceed- 
ing $5,000,  and  shall  be  further  punished  by  imprison- 
ment, in  the  discretion  of  the  court,  for  a  term  not  less 
than  three  months  nor  exceeding  twelve  months. 

SEC.  74.  That  the  several  circuit  courts  of  the  United  ^""^ffij 
States  are  hereby  invested  with  jurisdiction  to  prevent  $ggf*^  ofjuris~ 


4  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

and  restrain  violations  of  section  seventy-three  of  this 
Duty  of  dis-     act ;  and  it  shall  be  the  duty  of  ;he  several  district  attor- 

trict  attorneys.  .  J  .  .  . 

neys  or  the  United  States,  m  their  respective  districts, 
under  the  direction  of  the  Attorney  General,  to  institute 
proceedings  in  equity  to  prevent  and  restrain  such  vio- 
lations. Such  proceedings  may  be  by  way  of  petitions 
setting  forth  the  case  and  praying  that  such  violations 
shall  be  enjoined  or  otherwise  prohibited.  When  the 
parties  complained  of  shall  have  been  duly  notified  of 
such  petition  the  court  shall  proceed,  as  soon  as  may  be, 

Restraining  or-  to  the  hearing  and  determination  of  the  case ;  and  pend- 
ing such  petition  and  before  final  decree  the  court  may 
at  any  time  make  such  temporary  restraining  order  or 
prohibition  as  shall  be  deemed  just  in  the  premises. 

other  parties.  SEC.  75.  That  whenever  it  shall  appear  to  the  court 
before  which  any  proceeding  under  the  seventy- fourth 
section  of  this  act  may  be  pending  that  the  ends  of  jus- 
tice require  that  other  parties  should  be  brought  before 
the  court,  the  court  may  cause  them  to  be  summoned 
whether  they  reside  in  the  district  where  the  court  is 
held  or  not;  and  subpoenas  to  that  end  may  be  served 
in  any  district  by  the  marshal  thereof. 

Condemnation       SEC.  76.  That  any  property  owned  under  any  contract 

and  seizure  of          ,  ,  .    J    " 

property.          or  by  any  combination  or  pursuant  to  any  conspiracy 

<Amended  by      ,       /  ,     .J  ,.  J,     . 

Public  370,       (and  being  the  subiect  thereof)    mentioned   in  section 

Feb.  12,  1913.)  v  „    ,,.  ,     '    . 

seventy-three  of  this  act,  and  being  in  the  course  ot 
transportation  from  one  State  to  another  or  to  or  from 
a  Territory  or  the  District  of  Columbia  shall  be  forfeited 
to  the  United  States,  and  may  be  seized  and  condemned 
by  like  proceedings  as  those  provided  by  law  for  the 
forfeiture,  seizure,  and  condemnation  of  property  im- 
ported into  the  United  States  contrary  to  law. 
Threefold  dam-  SEC.  77.  That  any  person  who  shall  be  injured  in  his 

ages  to  injured 

party.  business  or  property  by  any  other  person  or  corporation 

by  reason  of  anything  forbidden  or  declared  to  be  un- 
lawful by  this  act  may  sue  therefor  in  any  circuit  court 
of  the  United  States  in  the  district  in  which  the  defend- 
ant  resides  or  is  found,  without  respect  to  the  amount 
in  controversy,  and  shall  recover  threefold  the  damages 
by  him  sustained,  and  the  costs  of  suit,  including  a 
reasonable  attorney's  fee. 

Received  by  the  President  August  15,  1894,  and  not 
being  returned  within  10  days  became  a  law  without  his 
approval. 


UNITED   STATES. 

[The  foregoing  sections  were  expressly  preserved  in 
the  Dingley  Act  of  1897.  Section  34  of  that  act  (30 
Stat.,  213)  concludes  as  follows:] 

And  further  provided,  That  nothing  in  this  act  shall  be 
construed  to  repeal  or  in  any  manner  affect  the  sections 
numbered  seventy-three,  seventy-four,  seventy-five,  sev- 
enty-six, and  seventy-seven  of  an  act  entitled  "An  act 
to  reduce  taxation,  to  provide  revenue  for  the  Govern- 
ment, and  for  other  purposes,"  which  became  a  law  on 
the  twenty-eighth  day  of  August,  eighteen  hundred  and 
ninety- four. 

[PUBLIC— No  370.     Feb.  12,  1913.] 

[H.  R.  25002.] 

AN  ACT  To  amend  section  seventy-three  and  section  seventy-six 
of  the  Act  of  August  twenty-seventh,  eighteen  hundred  and 
ninety-four,  entitled  "An  Act  to  reduce  taxation,  to  provide  rev- 
enue for  the  Government,  and  for  other  purposes." 

Be  it  enacted  by  the  Senate  and  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  assem- 
bled, That  section  seventy-three  and  section  seventy-six 
of  the  Act  of  August  twenty-seventh,  eighteen  hundred 
and  ninety-four,  entitled  "An  Act  to  reduce  taxation,  to 
provide  revenue  for  the  Government,  and  for  other  pur- 
poses," be,  and  the  same  are  hereby,  amended  to  read  as 
follows : 

"  SEC.  73.  That  every  combination,  conspiracy,  trust,  Amending 
agreement,  or  contract  is  hereby  declared  to  be  contrary  W.  15,  1894. 
to  public  policy,  illegal,  and  void  when  the  same  is  made 
by  or  between  two  or  more  persons  or  corporations  either 
of  whom,  as  agent  or  principal,  is  engaged  in  importing 
any  article  from  any  foreign  country  into  the  United 
States,  and  when  such  combination,  conspiracy,  trust, 
agreement,  or  contract  is  intended  to  operate  in  restraint 
of  lawful  trade,  or  free  competition  in  lawful  trade  or 
commerce,  or  to  increase  the  market  price  in  any  part  of 
the  United  States  of  any  article  or  articles  imported  or 
intended  to  be  imported  into  the  United  States,  or  of  any 
manufacture  into  which  such  imported  article  enters  or  is 
intended  to  enter.  Every  person  who  is  or  shall  here- 
after be  engaged  in  the  importation  of  goods  or  any  com- 
modity from  any  foreign  country  in  violation  of  this  sec- 
tion of  this  Act,  or  who  shall  combine  or  conspire  with 
another  to  violate  the  same,  is  guilty  of  a  misdemeanor, 


6  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

and  on  conviction  thereof  in  any  court  of  the  United 
States  such  person  shall  be  fined  in  "a  sum  not  less  than 
one  hundred  dollars  and  not  exceeding  five  thousand  dol- 
lars, and  shall  be  further  punished  by  imprisonment,  in 
the  discretion  of  the  court,  for  a  term  not  less  than  three 
months  nor  exceeding  twelve  months." 
Amending  "  SEC.  76.  That  any  property  owned  under  any  contract 

sec.  76,  act  .  .         .  J 

Aug.  15,  1894.  or  by  any  combination,  or  pursuant  to  any  conspiracy, 
and  being  the  subject  thereof,  mentioned  in  section 
seventy-three  of  this  Act,  imported  into  and  being  within 
the  United  States  or  being  in  the  course  of  transportation 
from  one  State  to  another,  or  to  or  from  a  Territory  or 
the  District  of  Columbia,  shall  be  forfeited  to  the  United 
States,  and  may  be  seized  and  condemned  by  like  proceed- 
ings as  those  provided  by  law  for  the  forfeiture,  seizure, 
and  condemnation  of  property  imported  into  the  United 
States  contrary  to  law." 

[24  Stat.  L.,  379.     Feb.  4,  1887.] 
AN  ACT  To  regulate  commerce.1 

Be  it  enacted  by  the  Senate  and  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  assem- 
Act  applies  to  bled.   That  the   provisions   of  this   act  shall   apply  to 

common  car-  A  .  .  r 

Hers.  any  common  carrier  or  carriers  engaged  in  the  trans- 

portation of  passengers  or  property  wholly  by  railroad, 
or  partly  by  railroad  and  partly  by  water  when  both  are 
used,  under  a  common  control,  management,  or  arrange- 
ment, for  a  continuous  carriage  or  shipment,  from  one 
State  or  Territory  of  the  United  States,  or  the  District 
of  Columbia,  to  any  other  State  or  Territory  of  the 
United  States,  or  the  District  of  Columbia,  or  from  any 
place  in  the  United  States  to  an  adjacent  foreign  country, 
or  from  any  place  in  the  United  States,  through  a  foreign 
country  to  any  other  place  in  the  United  States,  and  also 
to  the  transportation  in  like  manner  of  property  shipped 
from  any  place  in  the  United  States  to  a  foreign  country 
and  carried  from  such  place  to  a  port  of  transshipment, 
or  shipped  from  a  foreign  country  to  any  place  in  the 
United  States  and  carried  to  such  place  from  a  port  of 
entry  either  in  ttie  United  States  or  an  adjacent  foreign 

Exceptions  country :  Provided,  however,  That  the  provisions  of  this 
act  shall  not  apply  to  the  transportation  of  passengers  or 


1  The  parts  of  the  act  not  relating  to  combinations  are  omitted. 


UNITED   STATES.  7 

property,  or  to  the  receiving,  delivering,  storage,  or 
handling  of  property,  wholly  within  one  State,  and  not 
shipped  to  or  from  a  foreign  country  from  or  to  any 
State  or  Territory  as  aforesaid. 

The  term  "  railroad  "  as  used  in  this  act  shall  include 
all  bridges  and  ferries  used  or  operated  in  connection 
with  any  railroad,  and  also  all  the  road  in  use  by  any  cor- 
poration operating  a  railroad,  whether  owned  or  operated 
under  a  contract,  agreement,  or  lease;  and  the  term 
"  transportation "  shall  include  all  instrumentalities  of 
shipment  or  carriage.  * 

SEC.  5.  That  it  shall  be  unlawful  for-  any  common  car-  Pooling  agree- 

,  .  , ,  .    .  „  , ,  .  .     .  ments  unlaw- 

ner  subject  to  the  provisions  of  this  act  to  enter  into  any  fui. 
contract,  agreement,  or  combination  with  any  other  com- 
mon carrier  or  carriers  for  the  pooling  of  freights  of 
different  and  competing  railroads,  or  to  divide  between 
them  the  aggregate  or  net  proceeds  of  the  earnings  of 
such  railroads,  or  any  portion  thereof;  and  in  any  case 
of  an  agreement  for  the  pooling  of  freights  as  aforesaid, 
each  day  of  its  continuance  shall  be  deemed  a  separate 
offense. 

SEC.  7.  That  it  shall  be  unlawful  for  any  common  car-  Continuous 

.  ,  .    .  .  shipments. 

rier  subject  to  the  provisions  of  this  act  to  enter  into  any 
combination,  contract,  or  agreement,  expressed  or  im- 
plied, to  prevent,  by  change  of  time  schedule,  carriage  in 
different  cars,  or  by  other  means  or  devices,  the  carriage 
of  freight  from  being  continuous  from  the  place  of  ship- 
ment to  the  place  of  destination.  *  *  * 

[32  Stat.  L.,  823.     Feb.  11,  1903.] 

AX  ACT  To  expedite  the  hearing  and  determination  of  suits  in 
equity  pending  or  hereafter  brought  under  the  act  of  July 
second,  eighteen  hundred  and  ninety,  entitled  "An  act  to  pro- 
tect trade  and  commerce  against  unlawful  restraints  and  mo- 
nopolies," "An  act  to  regulate  commerce,"  approved  February 
fourth,  eighteen  hundred  and  eighty-seven,  or  any  other  acts 
having  a  like  purpose  that  may  be  hereafter  enacted. 

Be  it  enacted  by  the  Senate  and  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  as- 
sembled. That  in  any  suit  in  equity  pending  or  hereafter  Expedition  of 

'  .  .  J    ^  hearings  under 

brought  in  any  circuit  court  of  the  United  States  under  Sherman  law. 

(Amended  by 

the  act  entitled  "An  act  to  protect  trade  and  commerce  act  June  25, 
against  unlawful  restraints  and  monopolies,"  approved 
July  second,  eighteen  hundred  and  ninety,  "An  act  to 
regulate  commerce,"  approved  February  fourth,  eighteen 


8  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

hundred  and  eighty-seven,  or  any  other  acts  having  a 
like  purpose  that  hereafter  may  be  enacted,  wherein  the 
United  States  is  complainant,  the  Attorney  General  may 
file  with  the  clerk  of  such  court  a  certificate  that,  in 
his  opinion,  the  case  is  of  general  public  importance, 
a  copy  of  which  shall  be  immediately  furnished  by  such 
clerk  to  each  of  the  circuit  judges  of  the  circuit  in  which 
the  case  is  pending.  Thereupon  such  case  shall  be  given 
precedence  over  others  and  in  every  way  expedited,  and 
be  assigned  for  hearing  at  the  earliest  practicable  dayT 
before  not  less  than  three  of  the  circuit  judges  of  said 
circuit,  if  there  be  three  or  more ;  and  if  there  be  not  more 
than  two  circuit  judges,  then  before  them  and  such  dis- 
trict judge  as  they  may  select.  In  the  event  the  judges 
sitting  in  such  case  shall  be  divided  in  opinion,  the  case 
shall  be  certified  to  the  Supreme  Court  for  review  in  like 
manner  as  if  taken  there  by  appeal  as  hereinafter  pro- 
vided. 

appeais.ays  f°r  SEC.  2.  That  in  every  suit  in  equity  pending  or  here- 
after brought  in  any  circuit  court  of  the  United  States 
under  any  of  said  acts,  wherein  the  United  States  is 
complainant,  including  cases  submitted  but  not  yet  de- 
cided, an  appeal  from  the  final  decree  of  the  circuit  court 
will  lie  only  to  the  Supreme  Court,  and  must  be  taken 
within  sixty  days  from  the  entry  thereof:  Provided, 
That  in  any  case  where  an  appeal  may  have  been  taken 
from  the  final  decree  of  a  circuit  court  to  the  circuit 
court  of  appeals  before  this  act  takes  effect,  the  case  shall 
proceed  to  a  final  decree  therein,  and  an  appeal  may  be 
taken  from  such  decree  to  the  Supreme  Court  in  the 
manner  now  provided  by  law. 

JOINT  RESOLUTION  Instructing  the  Interstate  Commerce  Com- 
mission to  make  examinations  into  the  subject  of  railroad  dis- 
criminations and  monopolies  in  coal  and  oil,  and  report  on  the 
same  from  time  to  time. 

Resolved  ~by  the  Senate  and  House  of  Representatives 

of  the  United  States  of  America  in  Congress  assembled, 

zt^rteftoeZ-T^  tne  Interstate  Commerce  Commission  be,  and  is 

amine  into  sub- hereby,  authorized  and  instructed  immediately  to  inquire, 

J6Ct  or  r3.iiro3.Q  *^  __^        .  _ 

tSTnToai    investigate,  and  report  to  Congress,  or  to  the  President 
and  oil,  and     when  Congress  is  not  in  session,  from  time  to  time  as  the 

make  report  ^ 

time  time  to    investigation  proceeds — 


UNITED   STATES.  9 

First.  Whether  any  common  carriers  by  railroad,  sub 
ject  to  the  interstate-commerce  act,  or  either  of  them,  own 
or  have  any  interest  in,  by  means  of  stock  ownership  in 
other  corporations  or  otherwise,  any  of  the  coal  or  oil 
which  they,  or  either  of  them,  directly  or  through  other 
companies  which  they  control  or  in  which  they  have  an 
interest,  carry  over  their  or  any  of  their  lines  as  common 
carriers,  or  in  any  manner  own,  control,  or  have  any  in- 
terest in  coal  lands  or  properties  or  oil  lands  or  properties. 

Second.  Whether  the  officers  of  any  of  the  carrier  com-  f^ln  co™* 
panics  aforesaid,  or  any  of  them,  or  any  person  or  per-  o?dco°ai  am?8 
sons  charged  with  the  duty  of  distributing  cars  or  fur-  oil  traffic- 
nishing    facilities    to    shippers,    are    interested,    either 
directly  or  indirectly,  by  means  of  stock  ownership  or 
otherwise  in  corporations  or  companies  owning,  operat-  Jjfj. ^  Jj 
ing,  leasing,  or  otherwise  interested  in  any  coal  mines,  ^(JVn  finds 
coal  properties,  or  coal  traffic,  oil,  oil  properties,  or  oil  g^jgj?1  and  o11 
traffic  over  the  railroads  with  which  they  or  any  of  them 
are   connected   or  by   which  they   or  any   of  them   are 
employed. 

Third.  Whether  there  is  any  contract,  combination  m 
the  form  of  trust,  or  otherwise,  or  conspiracy  in 
of  trade  or  commerce  among  the  several  States,  in  which  g?^™  oil 
any  common  carrier  engaged  in  the  transportation  of  coal 
or  oil  is  interested,  or  to  which  it  is  a  party ;  and  whether 
any  such  common  carrier  monopolizes  or  attempts  to 
monopolize  or  combines  or  conspires  with  any  other  car- 
rier, company  or  companies,  person  or  persons  to  monop- 
olize any  part  of  the  trade  or  commerce  in  coal  or  oil  or 
traffic  therein  among  the  several  States  or  with  foreign 
nations,  and  whether  or  not,  and  if  so,  to  what  extent, 
such  carriers,  or  any  of  them,  limit  or  control,  directly  or 
indirectly,  the  output  of  coal  mines  or  the  price  of  coal 
and  oil  fields  or  the  price  of  oil. 

Fourth.  If  the  Interstate  Commerce  Commission  shall  ma™e\report. to 
find  that  the  facts,  or  any  of  them,  set  forth  in  the  three 
paragraphs  above  do  exist,  then  that  it  be  further  re- 
quired to  report  as  to  the  effect  of  such  relationship, 
ownership,  or  interest  in  coal  or  coal  properties  and  coal 
traffic  or  oil,  oil  properties,  or  oil  traffic  aforesaid,  or 
such  contracts  or  combinations  in  form  of  trust  or  other- 
wise, or  conspiracy  or  such  monopoly  or  attempt  to 
monopolize  or  combine  or  conspire  as  aforesaid,  upon 


10  LAWS   OK    TRUSTS   AND   MONOPOLIES. 

such  person  or  persons  as  may  be  engaged  independ- 
ently of  any  other  persons  in  mining  coal  or  producing 
oil  and  shipping  the  same,  or  other  products,  who  may 
desire  to  so  engage,  or  upon  the  general  public  as  con- 
sumers of  such  coal  or  oil. 

?upp?™and  d£-  Fifth.  That  said  commission  be  also  required  to  inves- 
tribution.  tigate  and  report  the  system  of  car  supply  and  distribu- 
tion in  effect  upon  the  several  railway  lines  engaged  in 
the  transportation  of  coal  or  oil  as  aforesaid,  and  whether 
said  systems  are  fair  and  equitable,  and  whether  the  same 
are  carried  out  fairly  and  properly ;  and  whether  said  car- 
riers, or  any  of  them,  discriminate  against  shippers  or 
parties  wishing  to  become  shippers  over  their  several 
lines,  either  in  the  matter  of  distribution  of  cars  or  in 
furnishing  facilities  or  instrumentalities  connected  with 
receiving,  forwarding,  or  carrying  coal  or  oil  as  afore- 
said. 

SSS?st  r^med?  Sixth.  That  said  commission  be  also  required  to  report 
andcon°criu-actsas  to  wnat  remedy  it  can  suggest  to  cure  the  evils  above 
sions.  set  forth,  if  they  exist. 

Seventh.  That  said  commission  be  also  required  to  re- 
port any  facts  or  conclusions  which  it  may  think  pertinent 
to  the  general  inquiry  above  set  forth. 

l?£5S2&to     Eighth-  That  said  commission  be  required  to  make  this 

time. time  to    investigation  at  its  earliest  possible  convenience  and  to 

furnish   the  information   above  required   from   time   to 

time  and  as  soon  as  it  can  be  done  consistent  with  the 

performance  of  its  public  duty. 

Public  Resolution,  No.  8,  approved  March  7,  1906. 

JOINT  RESOLUTION  Amending  joint  resolution  instructing  the 
Interstate  Commerce  Commission  to  make  examinations  into  the 
subject  of  railroad  discriminations  and  monopolies,  and  report 
on  the  same  from  time  to  time,  approved  March  seventh,  nine- 
teen hundred  and  six. 

Resolved  by  the  Senate  and  House  of  Represent  a*' vw 
of  the  United  States  of  America  in  Congress  assembled, 
That  joint  resolution  instructing  the  Interstate  Com- 
merce Commission  to  make  examinations  into  the  subject 
of  railroad  discriminations  and  monopolies,  and  report 
on  the  same  frorn  time  to  time,  approved  March  seventh, 
nineteen  hundred  and  six,  is  hereby  amended  by  adding 
the  following  thereto: 

Ninth.  To  enable  the  commission  to  perform  the  duties 
required  and  accomplish  the  purposes  declared  herein, 


UNITED   STATES,  11 

the  commission  shall  have  and  exercise  under  this  joint 
resolution  the  same  power  and  authority  to  administer 
oaths,  to  subpoena  and  compel  the  attendance  and  testi- 
mony of  witnesses  and  the  production  of  documentary 
evidence,  and  to  obtain  full  information,  which  said  com- 
mission now  has  under  the  act  to  regulate  commerce,  ap- 
proved February  fourth,  eighteen  hundred  and  eighty- 
seven  and  acts  amendatory  thereof  or  supplementary 
thereto  now  in  force  or  may  have  under  any  like  statute 
taking  effect  hereafter.  All  the  requirements,  obliga- 
tions, liabilities,  and  immunities  imposed  or  conferred 
by  said  act  to  regulate  commerce  and  by  "An  act  in  rela- 
tion to  testimony  before  the  Interstate  Commerce  Com- 
mission in  cases  under  or  connected  with  an  act  entitled 
'An  act  to  regulate  commerce,'  approved  February  fourth, 
eighteen  hundred  and  eighty-seven,  and  amendments 
thereto,"  approved  February  eleventh,  eighteen  hundred 
and  ninety-three,  shall  also  apply  to  all  persons  who  may 
be  subpoenaed  to  testify  as  witnesses  or  to  produce  docu- 
mentary evidence  in  pursuance  of  the  authority  herein 
conferred. 

Public  Eesolution,  No.  11,  approved  March  21,  1906. 

[36  S'tat.  L.,  854.     June  25,  1910.] 

AN  ACT  To  amend  an  act  entitled  "An  act  to  expedite  the  hearing 
and  determination  of  suits  in  equity  pending  or  hereafter 
brought  under  the  act  of  July  second,  eighteen  hundred  and 
ninety,  entitled  'An  act  to  protect  trade  and  commerce  against 
unlawful  restraints  and  monopolies,'  'An  act  to  regulate  com- 
merce/ approved  February  fourth,  eighteen  hundred  and  eighty- 
seven,  or  any  other  acts  having  a  like  purpose  that  may  be 
hereafter  enacted,"  approved  February  eleventh,  nineteen  hun- 
dred and  three. 

Be  it  enacted  ~by  the  Senate  and  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  as- 
sembled, That  section  one  of  the  act  entitled  "An  act  to 
expedite  the  hearing  and  determination  of  suits  in  equity 
pending  or  hereafter  brought  under  the  act  of  July  sec- 
ond, eighteen  hundred  and  ninety,  entitled  'An  act  to 
protect  trade  and  commerce  against  unlawful  restraints 
and  monopolies,'  'An  act  to  regulate  commerce,'  approved 
February  fourth,  eighteen  hundred  and  eighty-seven,  or 
any  other  acts  having  a  like  purpose  that  may  be  here- 
after enacted,"  approved  February  eleventh,  nineteen 
hundred  and  three,  be,  and  the  same  is  hereby,  amended 
so  as  to  read  as  follows : 


12  LAWS   ON   TRUSTS  AND  MONOPOLIES. 


under0*       "That   in   any   suit   in   equity   pending   or  hereafter 
trust  laws.        brought  in  any  circuit  court  of  the  United  States  under 
the  act  entitled  4An  act  to  protect  trade  and  commerce 
against  unlawful  restraints  and  monopolies,'  approved 
July  second,  eighteen  hundred  and  ninety,'  'An  act  to 
regulate  commerce,'  approved  February  fourth,  eighteen 
hundred  and  eighty-seven,  or  any  other  acts  having  a 
like  purpose  that  hereafter  may  be  enacted,  wherein  the 
United  States  is  complainant,  the  Attorney  General  may 
file  with  the  clerk  of  such  court  a  certificate  that,  in  his 
opinion,  the  case  is  of  general  public  importance,  a  copy 
of  which  shall  be  immediately  furnished  by  such  clerk 
to  each  of  the  circuit  judges  of  the  circuit  in  which  the 
case  is  pending.     Thereupon  such  case  shall  be  given 
precedence  over  others  and  in  every  way  expedited,  and 
be  assigned  for  hearing  at  the  earliest  practicable  day, 
before  not  less  than  three  of  the  circuit  judges  of  said 
court,  if  there  be  three  or  more  ;  and  if  there  be  not  more 
?u!g!sati°n  °f  than  two  circuit  judges,  then  before  them  and  such  dis- 
trict judge  as  they  may  select;  or,  in  case  the  full  court 
shall  not  at  any  time  be  made  up  by  reason  of  the  neces- 
sary absence  or  disqualification  of  one  or  more  of  the 
said  circuit  judges,  the  justice  of  the  Supreme  Court 
assigned  to  that  circuit  or  the  other  circuit  judge  or 
judges  may  designate  a  district  judge  or  judges  within 
the  circuit  who  shall  be  competent  to  sit  in  said  court 
at  the  hearing  of  said  suit.     In  the  event  the  judges  sit- 
ting in  such  case  shall  be  equally  divided  in  opinion  as 
to  the  decision  or  disposition  of  said  cause,  or  in  the 
event  that  a  majority  of  said  judges  shall  be  unable  to 
agree  upon  the  judgment,  order,  or  decree  finally  dis- 
posing of  said  case  in  said  court  which  should  be  entered 
in  said  cause,  then  they  shall  immediately  certify  that 
Failure  of        fact  to  the  Chief  Justice  of  the  United  States,  who  shall 
bfreertiefied  to   at  once  designate  and  appoint  some  circuit  judge  to  sit 
with  said  judges  and  to  assist  in  determining  said  cause. 
Such  order  of  the  Chief  Justice  shall  be  immediately 
transmitted  to  the  clerk  of  the  circuit  court  in  which 
said  cause  is  pending,  and  shall  be  entered  upon  the 
minutes  of  said,  court.     Thereupon  said  cause  shall  at 
once  be  set  down  for  reargument  and  the  parties  thereto 
notified  in  writing  by  the  clerk  of  said  court  of  the 
action  of  the  court  and  the  date  fixed  for  the  reargument 
thereof.     The  provisions  of  this  section  shall  apply  to 


UNITED  STATES,  13 

all  causes  and  proceedings  in  all  courts  now  pending,  or 
which  may  hereafter  be  brought. 


THE  JUDICIAL  CODE. 

AN  ACT  To  codify,  revise,  and  amend  the  laws  relating  to  the 
judiciary. 

[Approved  Mar.  3,  1911 ;  in  effect  Jan.  1,  1912.] 

SEC.  289.  The  circuit  courts  of  the  United  States,  upon  circuit  courts 

7      •"•         abolished. 

the  taking  effect  of  this  act,  shall  be  and  hereby  are 
abolished.     *     *     * 

SEC.  290.  All  suits  and  proceedings  pending  in  said  District  courts 

supersede  cir- 

circuit  courts  on  the  day  of  the  taking  effect  of  this  act,  cult  courts, 
whether  originally  brought  therein  or  certified  thereto 
from  the  district  courts,  shall  thereupon  and  thereafter 
be  proceeded  with  and  disposed  of  in  the  district  courts 
in  the  same  manner  and  with  the  same  effect  as  if  origi- 
nally begun  therein.  *  *  * 

SEC.  291.  Wherever,  in  any  law  not  embraced  within  ^^e 
this  act,  any  reference  is  made  to,  or  any  power  or  duty  is  cu":  courts- 
conferred  or  imposed  upon,  the  circuit  courts,  such  ref- 
erence shall,  upon  the  taking  effect  of  this  act,  be  deemed 
and  held  to  refer  to,  and  to  confer  such  power  and  im- 
pose such  duty  upon,  the  district  courts. 

[32  Stat  L.,  854,  903.     Feb.  25,  1903.] 

AN  ACT  Making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending 
June  thirtieth,  nineteen  hundred  and  four,  and  for  other  pur- 
poses. 

***** 

That  for  the  enforcement  of  the  provisions  of  the  act 
entitled  "An  act  to  regulate  commerce,"  approved  Febru- 
ary fourth,  eighteen  hundred  and  eighty-seven,  and  all 
acts  amendatory  thereof  or  supplemental  thereto,  and 
of  the  act  entitled  "An  act  to  protect  trade  and  commerce 
against  unlawful  restraints  and  monopolies,"  approved 
July  second,  eighteen  hundred  and  ninety,  and  all  acts 
amendatory  thereof  or  supplemental  thereto,  and  sections 
seventy-three,  seventy-four,  seventy-five,  and  seventy-six 
of  the  act  entitled  "An  act  to  reduce  taxation,  to  pro- 
vide revenue  for  the  Government,  and  other  purposes," 
approved  August  twenty-seventh,  eighteen  hundred  and 


14 


LAWS   ON   TKUSTS  AND   MONOPOLIES. 


Exemptions 
from  prosecu- 
tions under 
trust  acts. 


ninety-four,  the  sum  of  $500,000,  to  be  immediately  avail- 
able, is  hereby  appropriated,  out  of  any  money  in  the 
Treasury  not  heretofore  appropriated,  to  be  expended 
under  the  direction  of  the  Attorney  General  in  the  em- 
ployment of  special  counsel  and  agents  of  the  Department 
of  Justice  to  conduct  proceedings,  suits,  and  prosecutions 
under  said  acts  in  the  courts  of  the  United  States :  Pro- 
vided, That  no  person  shall  be  prosecuted  or  be  subjected 
to  any  penalty  or  forfeiture  for  or  on  account  of  any 
transaction,  matter,  or  thing  concerning  which  he  may 
testify  or  produce  evidence,  documentary  or  otherwise, 
in  any  proceeding,  suit,  or  prosecution  under  said  acts: 
Provided  further,  That  no  person  so  testifying  shall  be 
exempt  from  prosecution  or  punishment  for  perjury 
committed  in  so  testifying. 


[32  Stat.  L.,  825,  827.     Feb.  14,  1903.] 

AN  ACT  To  establish  the  Department  of  [Commerce  and  Labor.] 
Now  Department  of  Commerce,  act  March  fourth,  nineteen 
hundred  and  thirteen. 

***** 


Bureau  of  Cor- 
porations. 


SEC.  6.  That  there  shall  be  in  the  Department  of  Com- 
merce and  Labor  a  bureau  to  be  called  the  Bureau  of 
Corporations,  and  a  Commissioner  of  Corporations  who 
shall  be  the  head  of  said  bureau,  to  be  appointed  by  the 
President,  who  shall  receive  a  salary  of  $5,000  per  an- 
num. There  shall  also  be  in  said  bureau  a  deputy  com- 
missioner who  shall  receive  a  salary  of  $3,500  per  annum 
and  who  shall,  in  the  absence  of  the  commissioner,  act  as 
and  perform  the  duties  of  the  Comimssioner  of  Corpora- 
tions, and  who  shall  also  perform  such  other  duties  as 
may  be  assigned  to  him  by  the  Secretary  of  Commerce 
and  Labor  or  by  the  said  commissioner.  There  shall  also 
be  in  the  said  bureau  a  chief  clerk  and  such  special  agents, 
clerks,  and  other  employees  as  may  be  authorized  by  law. 
Powers  of  bu-  The  said  commissioner  shall  have  power  and  authority 

rcuu  to  ID  &  KG 

investigation,  to  make,  under  the  direction  and  control  of  the  Secretary 
of  Commerce  and  Labor,  diligent  investigation  into  the 
organization,  conduct,  and  management  of  the  business 
of  any  corporation,  joint-stock  company,  or  corporate 
combination  engaged  in  commerce  among  the  several 
States  and  with  foreign  nations,  excepting  common  car- 
riers subject  to  "An  act  to  regulate  commerce,"  approved 
February  fourth,  eighteen  hundred  and  eighty- seven,  and 


UNITED    STATES.  15 

to  gather  such  information  and  data  as  will  enable  the 
President  of  the  United  States  to  make  recommendations 
to  Congress  for  legislation  for  the  regulation  of  such 
commerce  and  to  report  such  data  to  the  President  from 
time  to  time  as  he  shall  require;  and  the  information  so 
obtained,  or  so  much  thereof  as  the  President  may  direct, 
shall  be  made  public. 

In  order  to  accomplish  the  purposes  declared  in  the 
foregoing  part  of  this  section,  the  said  commissioner 
shall  have  and  exercise  the  same  power  and  authority  in 
respect  to  corporations,  joint-stock  companies,  and  com- 
binations subject  to  the  provisions  hereof  as  is  conferred 
on  the  Interstate  Commerce  Commission  in  said  "  act 
to  regulate  commerce,"  and  the  amendments  thereto  in 
respect  to  common  carriers,  so  far  as  the  same  may  be 
applicable,  including  the  right  to  subpoena  and  compel 
the  attendance  and  testimony  of  witnesses  and  the  pro-  o 
duction  of  documentary  evidence  and  to  administer  oaths.  e??ks'  papers 
All  the  requirements,  obligations,  liabilities,  and  immu- 
nities imposed  or  conferred  by  said  "  act  to  regulate  com- 
merce "  and  by  "An  act  in  relation  to  testimony  before 
the  Interstate  Commerce  Commission,"  and  so  forth,  ap- 
proved February  eleventh,  eigtheen  hundred  and  ninety- 
three,  supplemental  to  said  "  act  to  regulate  commerce  " 
shall  also  apply  to  all  persons  who  may  be  subpoenaed  to 
testify  as  witnesses  or  to  produce  documentary  evidence 
in  pursuance  of  the  authority  conferred  by  this  section. 

It  shall  also  be  the  province  and  duty  of  said  bureau,  ports" 
under  the  direction  of  the  Secretary  of  Commerce  and 
Labor,  to  gather,  compile,  publish,  and  supply  useful 
information  concerning  corporations  doing  business 
within  the  limits  of  the  United  States  as  shall  engage 
in  interstate  commerce  or  in  commerce  between  the 
United  States  and  any  foreign  country,  including  cor- 
porations engaged  in  insurance,  and  to  attend  to  such 
other  duties  as  may  be  hereafter  provided  by  law. 


[34  Stat,  798.     June  30,  1906.] 

AN  ACT  Defining  the  right  of  immunity  of  witnesses  under  the 
act  entitled  "An  act  in  relation  to  testimony  before  the  Inter- 
state Commerce  Commission,"  and  so  forth,  approved  February 
eleventh,  eighteen  hundred  and  ninety-three,  and  an  act  en- 
titled "An  act  to  establish  the  Department  of  Commerce  and 
Labor,"  approved  February  fourteenth,  nineteen  hundred  and 
three,  and  an  act  entitled  "An  act  to  further  regulate  com- 


16 


Immunity    of 
Witnesses. 


LAWS   ON   TKUSTS  AND  MONOPOLIES. 

rnerce  with  foreign  nations  and  among  the  States,"  approved 
February  nineteenth,  nineteen  hundred  and  three,  and  an  act 
entitled  "An  act  making  appropriations  for  the  legislative,  ex- 
ecutive, and  judicial  expenses  of  the  Government  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  four,  and  for 
other  purposes,"  approved  February  twenty-fifth,  nineteen  hun- 
dred and  three. 

That  under  the  immunity  provisions  in  the  act  en- 
titled "An  act  in  relation  to  testimony  before  the  Inter- 
state Commerce  Commission,"  and  so  forth,  approved 
February  eleventh,  eighteen  hundred  and  ninety-three, 
in  section  six  of  the  act  entitled  "An  act  to  establish  the 
Department  of  Commerce  and  Labor,"  approved  Feb- 
ruary fourteenth,  nineteen  hundred  and  three,  and  in 
the  act  entitled  "An  act  to  further  regulate  commerce 
with  foreign  nations  and  among  the  States,"  approved 
February  nineteenth,  nineteen  hundred  and  three,  and  in 
the  act  entitled  "An  act  making  appropriations  for  the 
legislative,  executive,  and  judicial  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  four,  and  for  other  purposes,"  approved 
February  twenty-fifth,  nineteen  hundred  and  three,  im- 
munity shall  extend  only  to  a  natural  person  who,  in 
obedience  to  a  subpoena,  gives  testimony  under  oath  or 
produces  evidence,  documentary  or  otherwise,  under  oath. 

[Public,  No.  3.     H.  R.  2441.     Mar.  4,  1913.] 

AN  ACT  Making  appropriations  for  sundry  civil  expenses  of  the 
Government  for  the  fiscal  year  ending  June  thirtieth,  nineteen 
hundred  and  fourteen,  and  for  other  purposes. 


Limitation  on 
prosecutions  of 


Enforcement  of  antitrust  laws:  For  the  enforcement 
oar^nizationsm  of  antitrust  laws,  including  not  exceeding  $10,000  for 
salaries  of  necessary  employees  at  the  seat  of  government, 
$300,000 :  Provided,  however,  That  no  part  of  this  money 
shall  be  spent  in  the  prosecution  of  any  organization  or 
individual  for  entering  into  any  combination  or  agree- 
ment having  in  view  the  increasing  of  wages,  shortening 
of  hours  or  bettering  the  conditions  of  labor,  or  for  any 
act  done  in  furtherance  thereof,  not  in  itself  unlawful: 
Provided  further,  That  no  part  of  this  appropriation 
snail  be  expended  for  the  prosecution  of  producers  of 
xarm  products  and  associations  of  farmers  who  cooperate 
and  organize  in  an  effort  to  and  for  the  purpose  to  obtain 
and  maintain  a  fair  and  reasonable  price  for  their  prod- 
ucts. *  *  * 


UNITED   STATES.  17 

[Public,  No.  337.     Approved  Aug.  24,  1912.     H.  R.  21969.] 

AN  ACT  To  provide  for  the  opening,  maintenance,  protection,  and 
operation  of  the  Panama  Canal,  and  the  sanitation  and  govern- 
ment of  the  Canal  Zone. 

*  *  *  *  * 

SEC.  11.  That  section  five  of  the  act  to  regulate  com- 
merce, approved  February  fourth,  eighteen  hundred  and 
eighty-seven  as  heretofore  amended,  is  hereby  amended 
by  adding  thereto  a  new  paragraph  at  the  end  thereof, 
as  follows: 

"  From  and  after  the  first  day  of  July,  nineteen  hun-  ?0aiowndsShip0t 
dred  and  fourteen,  it  shall  be  unlawful  for  any  railroad  ExcePtions- 
company  or  other  common  carrier  subject  to  the  act  to 
regulate  commerce  to  own,  lease,  operate,  control,  or  have 
any  interest  whatsoever  (by  stock  ownership  or  other- 
wise, either  directly,  indirectly,  through  any  holding 
company,  or  by  stockholders  or  directors  in  common,  or 
in  any  other  manner)  in  any  common  carrier  by  water 
operated  through  the  Panama  Canal  or  elsewhere  with 
which  said  railroad  or  other  carrier  aforesaid  does  or 
may  compete  for  traffic  or  any  vessel  carrying  freight  or 
passengers  upon  said  water  route  or  elsewhere  with  which 
said  railroad  or  other  carrier  aforesaid  does  or  may  com- 
pete for  traffic;  and  in  case  of  the  violation  of  this  pro- 
vision each  day  in  which  such  violation  continues  shall  be 
deemed  a  separate  offense." 

Jurisdiction  is  hereby  conferred  on  the  Interstate  Com- 
merce Commission  to  determine  questions  of  fact  as  to  the 
competition  or  possibility  of  competition,  after  full  hear- 
ing, on  the  application  of  any  railroad  company  or  other 
carrier.  Such  application  may  be  filed  for  the  purpose 
of  determining  whether  any  existing  service  is  in  viola- 
tion of  this  section  and  pray  for  an  order  permitting  the 
continuance  of  any  vessel  or  vessels  already  in  operation, 
or  for  the  purpose  of  asking  an  order  to  install  new  serv- 
ice not  in  conflict  with  the  provisions  of  this  paragraph. 
The  commission  may  on  its  own  motion  or  the  applica- 
tion of  any  shipper  institute  proceedings  to  inquire  into 
the  operation  of  any  vessel  in  use  by  any  railroad  or 
other  carrier  which  has  not  applied  to  the  commission 
and  had  the  question  of  competition  or  the  possibility  of 
competition  determined  as  herein  provided.  In  all  such 
cases  the  order  of  said  commission  shall  be  final. 

16491—13 2 


18  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

terSarte 'com-  ^  tne  Interstate  Commerce  Commission  shall  be  of  the 
merce  commis-  opinion  that  any  such  existing  specified  service  by  water 
other  than  through  the  Panama  Canal  is  being  operated 
in  the  interest  of  the  public  and  is  of  advantage  to  the 
convenience  and  commerce  of  the  people  and  that  such 
extension  will  neither  exclude,  prevent,  nor  reduce  com- 
petition on  the  route  by  water  under  consideration,  the 
Interstate  Commerce  Commission  may,  by  order,  extend 
the  time  during  which  such  service  by  water  may  continue 
to  be  operated  beyond  July  first,  nineteen  hundred  and 
fourteen.  In  every  case  of  such  extension  the  rates,, 
schedules,  and  practices  of  such  water  carrier  shall  be 
filed  with  the  Interstate  Commerce  Commission  and  shall 
be  subject  to  the  act  to  regulate  commerce  and  all  amend- 
ments thereto  in  the  same  manner  and  to  the  same  extent 
as  is  the  railroad  or  other  common  carrier  controlling  such 
water  carrier  or  interested  in  any  manner  in  its  opera- 
tion: Provided,  Any  application  for  the  extension  under 
the  terms  of  this  provision  filed  with  the  Interstate  Com- 
merce Commission  prior  to  July  first,  nineteen  hundred 
and  fourteen,  but  for  any  reason  not  heard  and  disposed 
of  before  said  date,  may  be  considered  and  granted 
thereafter. 

o^operatSfin  ^°  vessel  permitted  to  engage  in  the  coastwise  or  for- 
sh°e?mia>S  ufw  eig11  trade  of  the  United  States  shall  be  permitted  to  enter 
canal?  use  or  Pass  through  said  canal  if  such  ship  is  owned,  char- 
tered, operated,  or  controlled  by  any  person  or  company 
which  is  doing  business  in  violation  of  the  provisions  of 
the  act  of  Congress  approved  July  second,  eighteen  hun- 
dred and  ninety,  entitled  "An  act  to  protect  trade  and 
commerce  against  unlawful  restraints  and  monopolies," 
or  the  provisions  of  sections  seventy-three  to  seventy- 
seven,  both  inclusive,  of  an  act  approved  August  twenty- 
seventh,  eighteen  hundred  and  ninety-four,  entitled  "An 
act  to  reduce  taxation,  to  provide  revenue  for  the  Gov- 
ernment, and  for  other  purposes,"  or  the  provisions  of 
any  other  act  of  Congress  amending  or  supplementing 
the  said  act  of  July  second,  eighteen  hundred  and  ninety, 
commonly  known  as  the  Sherman  Antitrust  Act,  and 
amendments  thereto,  or  said  sections  of  the  act  of  August 
twentj^-seventh,  "eighteen  hundred  and  ninety-four.  The 
question  of  fact  may  be  determined  by  the  judgment  of 
any  court  of  the  United  States  of  competent  jurisdiction 
in  any  cause  pending  before  it  to  which  the  owners  or 


UNITED   STATES.  19 

operators  of  such  ship  are  parties.  Suit  may  be  brought 
by  any  shipper  or  by  the  Attorney  General  of  the  United 
States. 

That  section  six  of  said  act  to  regulate  commerce,  as 
heretofore  amended,  is  hereby  amended  by  adding  a  new 
paragraph  at  the  end  thereof,  as  follows: 

"When  property  may  be  or  is  transported  from  point  ^diction  ^f1' 
to  point  in  the  United  States  by  rail  and  water  through 
the  Panama  Canal  or  otherwise,  the  transportation  being sion- 
by  a  common  carrier  or  carriers,  and  not  entirely  within 
the  limits  of  a  single  State,  the  Interstate  Commerce 
Commission  shall  have  jurisdiction  of  such  transporta- 
tion and  of  the  carriers,  both  by  rail  and  by  water,  which 
may  or  do  engage  in  the  same,  in  the  following  particu- 
lars, in  addition  to  the  jurisdiction  given  by  the  act  to 
regulate  commerce,  as  amended  June  eighteenth,  nine- 
teen hundred  and  ten: 

"  (a)  To  establish  physical  connection  between  the  lines 
of  the  rail  carrier  and  the  dock  of  the  water  carrier  by  nections. 
directing  the  rail  carrier  to  make  suitable  connection  be- 
tween its  line  and  a  track  or  tracks  which  have  been  con- 
structed from  the  dock  to  the  limits  of  its  right  of  way, 
or  by  directing  either  or  both  the  rail  and  water  carrier, 
individually  or  in  connection  with  one  another,  to  con- 
struct and  connect  with  the  lines  of  the  rail  carrier  a  spur 
track  or  tracks  to  the  dock.  This  provision  shall  only 
apply  where  such  connection  is  reasonably  practicable, 
can  be  made  with  safety  to  the  public,  and  where  the 
amount  of  business  to  be  handled  is  sufficient  to  justify 
the  outlay. 

"  The  commission  shall  have  full  authority  to  deter-  May  fil  terms, 
mine  the  terms  and  conditions  upon  which  these  con- 
necting tracks,  when  constructed,  shall  be  operated,  and 
it  may,  either  in  the  construction  or  the  operation  of  such 
tracks,  determine  what  sum  shall  be  paid  to  or  by  either 
carrier.  The  provisions  of  this  paragraph  shall  extend 
to  cases  where  the  dock  is  owned  by  other  parties  than  the 
carrier  involved. 

"(b)  To  establish  through  routes  and  maximum  joint  thrJufh  routes 
rates  between  and  over  such  rail  and  water  lines,  and  to 
determine  all  the  terms  and  conditions  under  which  such 
lines  shall  be  operated  in  the  handling  of  the  traffic  em- 
braced. 

"(c)  To  establish  maximum  proportional  rates  by  rail  JJ^  J*>£JJ*1' 
to  and  from  the  ports  to  which  the  traffic  is  brought,  or  tional  rates- 


20  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

from  which  it  is  taken  by  the  water  carrier,  and  to  de- 
termine to  what  traffic  and  in  connection  with  what  ves- 
sels and  upon  what  terms  and  conditions  such  rates  shall 
apply.  By  proportional  rates  are  meant  those  which 
differ  from  the  corresponding  local  rates  to  and  from  the 
port  and  which  apply  only  to  traffic  which  has  been 
brought  to  the  port  or  is  carried  from  the  port  by  a  com- 
mon carrier  by  water. 
M^y^equire  "(d)  If  any  rail  carrier  subject  to  the  act  to  regulate 

rangements      commerce  enters  into  arrangements  with  any  water  car- 
made  for  all  .  J 
lines.              Her  operating  from  a  port  in  the  United  States  to  a 

foreign  country,  through  the  Panama  Canal  or  otherwise, 
for  the  handling  of  through  business  between  interior 
points  of  the  United  States  and  such  foreign  country, 
the  Interstate  Commerce  Commission  may  require  such 
railway  to  enter  into  similar  arrangements  with  any  or 
all  other  lines  of  steamships  operating  from  said  port  to 
the  same  foreign  country." 

Orders  to  be  The  orders  of  the  Interstate  Commerce  Commission 
formal  com-  relating  to  this  section  shall  only  be  made  upon  formal 
complaint  or  in  proceedings  instituted  by  the  commission 
of  its  own  motion  and  after  full  hearing.  The  orders 
provided  for  in  the  two  amendments  to  the  act  to  regu- 
late commerce  enacted  in  this  section  shall  be  served  in 
the  same  manner  and  enforced  by  the  same  penalties  and 
proceedings  as  are  the  orders  of  the  commission  made 
under  the  provisions  of  section  fifteen  of  the  act  to  regu- 
late commerce,  as  amended  June  eighteenth,  nineteen 
hundred  and  ten,  and  they  may  be  conditioned  for  the 
Bonds.  payment  of  any  sum  or  the  giving  of  security  for  the 

payment  of  any  sum  or  the  discharge  of  any  obligation 
which  may  be  required  by  the  terms  of  said  order. 

[Public,  No.  433.     Approved  Mar.  4,  1913.     H.  R.  28812.] 

AN  ACT  Making  appropriations  for  the  naval  service  for  the  fiscal 
year  ending  June  thirtieth,  nineteen  hundred  and  fourteen,  and 
for  other  purposes. 

***** 

That  no  part  of  any  sum  herein  appropriated  shall  be 

expended  for  the  purchase  of  structural  steel,  ship  plates, 

armor,  armament,  or  machinery  from  any  persons,  firms, 

^Sherman*1  or   corporations    who    have    combined    or    conspired    to 

tfcT  ate  in  na  monopolize  the  interstate  or  foreign  commerce  or  trade 

vai  contracts.  of  £ne  United  States,  or  the  commerce  or  trade  between 

the  States  and  any  Territory  or  the  District  of  Columbia, 


UNITED  STATES.  21 

in  any  of  the  articles  aforesaid,  and  no  purchase  of  struc- 
tural steel,  ship  plates,  or  machinery  shall  be  made  at  a 
price  in  excess  of  a  reasonable  profit  above  the  actual 
cost  of  manufacture.  But  this  limitation  shall  in  no 

case  apply  to  any  existing  contract. 

***** 

[Public,  No.  435.     Approved  Mar.  4,  1913.     H.  R.  28499.] 

AN  ACT  Making  appropriations  to  provide  for  the  expenses  of 
the  government  of  the  District  of  Columbia  for  the  fiscal  year 
ending  June  thirtieth,  nineteen  hundred  and  fourteen,  and  for 

other  purposes. 

***** 

PAR.  54.  That  no  franchise  nor  any  right  to  or  under 
any  franchise  to  own  or  operate  any  public  utility  as  de- 
fined in  this  section  or  to  use  the  tracks  of  any  street  rail- 
road shall  be  assigned,  transferred,  or  leased,  nor  shall 
any  contract  or  agreement  with  reference  to  or  affecting 
any  such  franchise  or  right  be  valid  or  of  any  force  or 
effect  whatsoever  unless  the  assignment,  transfer,  lease, 
contract,  or  agreement  shall  have  been  approved  by  the 
commission  in  writing.  The  permission  and  approval  of 
the  commission  to  the  assignment,  transfer,  or  lease  of  a 
franchise  under  this  paragraph  shall  not  be  construed 
to  revive  or  validate  any  lapsed  or  invalid  franchise  or 
to  enlarge  or  add  to  the  powers  and  privileges  contained 
in  the  grant  of  any  franchise  or  to  waive  any  forfeiture. 
It  shall  be  unlawful  for  any  street  railroad  corporation,  NO  public  utn- 

,      ,  ity  to  acquire 

eras  corporation,  electric  corporation,  telephone  corpora-  bonds  or  stock 

,  ,.          . .,.,  of  others,  un- 

tion,  telegraph  corporation,  or  other  public  utility  cor- less, 
poration,  directly  or  indirectly,  to  acquire  the  stock  or 
bonds  of  any  other  corporation  incorporated  for  or  en- 
gaged in  the  same  or  similar  business  as  it  is,  unless 
authorized  in  writing  to  do  so  by  the  commission,  and 
every  contract,  transfer,  agreement  for  transfer  or  as- 
signment of  any  such  stock  or  bonds  without  such  written 

authority  shall  be  void  and  of  no  effect. 

***** 

PAR.  72.  That  the  power  to  create  lines  on  corporate 
property  by  public  utilities  in  the  District  of  Columbia 
is  hereby  declared  to  be  a  special  privilege  the  right  of 
supervision,  regulation,  restriction,  and  control  of  which 
is  hereby  vested  in  the  public  utilities  commission  of  the 


22  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

District  of  Columbia,  and  such  power  shall  De  exercised 
according  to  the  provisions  of  this  section. 

PAR-  73-  That  no  public  utility  shall  hereafter  issue 
any  stocks,  stock  certificates,  bonds,  mortgages,  or  any 
other  evidences  of  indebtedness  payable  in  more  than 
one  year  from  date,  until  it  shall  have  first  obtained  the 
certificate  of  the  commission  showing  authority  for  such 
issue  from  the  commission. 

PAR.  74.  That  no  public  utility  shall  issue  any  stocks, 
certificates  of  stock,  bonds,  or  other  evidences  of  indebt- 
edness for  money,  property,  or  services,  either  directly 
or  indirectly,  nor  shall  it  receive  any  money,  property,  or 
services  in  payment  of  the  same,  either  directly  or  indi- 
rectly, until  there  shall  have  been  recorded  upon  the  books 
°^  sucn  Public  utility  the  certificate  of  the  commission  in 

necessary.        this  section  provided  for. 

de°nds°ck  divi"  PAR-  75-  That  no  Public  utility  shall  declare  any  stock, 
bond,  or  scrip  dividend  or  divide  the  proceeds  of  the  sale 
of  any  stock,  bond,  or  scrip  among  its  stockholders. 

PAR.  76.  That  no  public  utility  shall  issue  any  stocks, 
certificates  of  stock,  bonds,  or  other  evidences  of  indebt- 
edness secured  on  its  property  in  the  District  of  Columbia 

organization!  f°r  the  purpose  of  any  reorganization  or  consolidation  in 
excess  of  the  total  amount  of  the  stocks,  certificates  of 
stock,  bonds,  or  other  evidences  of  indebtedness  then  out- 
standing against  the  public  utilities  so  reorganizing  or 
consolidating,  and  no  such  public  utility  shall  purchase 
the  property  of  any  other  public  utility  for  the  purpose. of 
effecting  a  consolidation  until  the  commission  shall  have 
determined  and  set  forth  in  writing  that  said  consolida- 
tion will  be  in  the  public  interest,  nor  until  the  com- 
mission shall  have  approved  in  writing  the  terms  upon 
which  said  consolidation  shall  be  made. 

PAR.  77.  That  no  public  utility  shall  apply  the  pro- 
ceeds of  any  such  stock,  certificates  of  stock,  bonds,  or 
other  evidences  of  indebtedness  to  any  other  purpose  or 
issue  the  same  on  any  less  favorable  terms  than  that 
specified  in- the  certificate  issued  by  the  commission. 

void  issues.  PAR.  78.  That  all  stocks,  certificates  of  stock,  bonds, 
and  other  evidences  of  indebtedness  issued  contrary  to 
the  provisions  of  this  section  shall  be  void. 


UNITED   STATES.  23 

RULES  OF  PRACTICE  IN  EQUITY,  SUPREME  COURT  OF 
THE  UNITED  STATES. 

[Promulgated  Nov.  4,  1912.1 
73. 

PRELIMINARY    INJUNCTIONS    AND    TEMPORARY    RESTRAINING 

ORDERS. 

No  preliminary  injunction  shall  be  granted  without  no-  Rules  of  Su- 
iice  to  the  opposite  party.  Xor  shall  any  temporary 
restraining  order  be  granted  without  notice  to  the  oppo- 
site party,  unless  it  shall  clearly  appear  from  specific 
facts,  shown  by  affidavit  or  by  the  verified  bill,  that  im- 
mediate and  irreparable  loss  or  damage  will  result  to  the 
applicant  before  the  matter  can  be  heard  on  notice.  In 
case  a  temporary  restraining  order  shall  be  granted  with- 
out notice,  in  the  contingency  specified,  the  matter  shall 
be  made  returnable  at  the  earliest  possible  time,  and  in 
no  event  later  than  ten  days  from  the  date  of  the  order, 
and  shall  take  precedence  of  all  matters,  except  older 
matters  of  the  same  character.  When  the  matter  comes 
up  for  hearing  the  party  who  obtained  the  temporary 
restraining  order  shall  proceed  with  his  application  for 
a  preliminary  injunction,  and  if  he  does  not  do  so  the 
court  shall  dissolve  his  temporary  restraining  order. 
Upon  two  days'  notice  to  the  party  obtaining  such  tem- 
porary restraining  order,  the  opposite  party  may  appear 
and  move  the  dissolution  or  modification  of  the  order, 
and  in  that  event  the  court  or  judge  shall  proceed  to  hear 
and  determine  the  motion  as  expeditiously  as  the  ends  of 
justice  may  require.  Every  temporary  restraining  or- 
der shall  be  forthwith  filed  in  the  clerk's  office. 

74. 

INJUNCTION   PENDING   APPEAL. 

When  an  appeal  from  a  final  decree,  in  an  equity  suit, 
granting  or  dissolving  an  injunction,  is  allowed  by  a 
justice  or  a  judge  who  took  part  in  the  decision  of  the 
cause,  he  may,  in  his  discretion,  at  the  time  of  such  allow- 
ance, make  an  order  suspending,  modifying,  or  restoring 
the  injunction  during  the  pendency  of  the  appeal,  upon 
such  terms,  as  to  bond  or  otherwise,  as  he  may  consider 
proper  for  the  security  of  the  rights  of  the  opposite 
party. 


24  DECISIONS  ON  TRUSTS  AND  MONOPOLIES. 

CASES    DECIDED    UNDER    THE    SHERMAN    LAW    OR 
RELATING  THERETO. 

[See   Federal   Anti-Trust    Decisions,    4    volumes.] 

Abner-Drury  Brewing  Co.,  Leonard  v 25  D.  C.  App.,  161. 

A.  Booth  &  Co.  v.  Davis 127  Fed.,  875. 

131  Fed.,  31. 
Addyston  Pipe  &  Steel  Co.,  U.  S.  v : 78  Fed.,  712. 

85  Fed.,  271. 

175  11.  S..  211. 

Agler,  U.  S.  v 62  Fed.,  824. 

Alexander  v.  U.  S 201  U.  S.,  117. 

Allen  Bros.  Tob.  Co.,  R.  J.  Reynolds  Tob.  Co.  v_151  Fed.,  819. 
Aluminum    Castings   Co.    v.    Michigan   Alumi- 
num  F.   Co 190  Fed.,  879. 

American  Banana  Co.  v.  United  Fruit  Co 153  Fed..  943. 

160  Fed.,  184. 

166  Fed..  261. 

213  U.  S.,  347. 

American  Biscuit  &  Mfg.  Co.  v.  Klotz 44  Fed.,  721. 

American  Brake  Beam  Co.  v.  Pungs 141  Fed.,  923. 

American  Naval  Stores  Co.,  U.  S.  v 172  Fed.,  455. 

186  Fed..  592. 
American  Preservers'  Co.,  Bishop  v 51  Fed.,  272. 

105  Fed.,  845. 
American  School  Furniture  Co.,  Metcalf  v 108  Fed.,  909. 

113  Fed.,  1020. 

122  Fed.,  115. 

American  Sugar  Ref.  Co.,  Pennsylvania  Sugar 
Ref.  co.   v . 160  Fed.,  144. 

166  Fed.,  254. 

American  Tel.  &  Tel.  Co.,  Ames  v 166  Fed.,  820. 

American  Tob.  Co.,  Larcus  v _163  Fed.,  712. 

American  Tob.  Co.,  Monarch  Tob.  Works  v 165  Fed.,  774. 

American  Tob.  Co.,  People's  Tob.  Co.  v 170  Fed.,  396. 

American  Tob.  Co.,  U.  S.,  v 164  Fed.,  700. 

221  U.  S.,  106. 

191  Fed.,  371. 

American  Tob.  Co.,  U.  S.  Tob.  Co.  v 163  Fed.,  701. 

American  Tob.  Co.,  Ware-Kramer  Tob.  Co.  v__178  Fed.,  117. 

180  Fed.,  160. 
American  Tob.  Co.,  Weisert  Bros.  Tob.  Co.  v__163  Fed.,  712. 

American  Union  Coal  Co.  v.  Penna.  R.  Co 159  Fed.,  278 

Ames  v.  American  Tel.  &  Tel.  Co 166  Fed.,  820. 

Anderson,  Shawnee  Compress  Co.  v 87  Pac.,  315. 

209  U.  S.,  423 
Anderson  v.  United  States 82  Fed,  998 

171  U.  S.,  604. 
Arkansas  Brokerage  Co.  v.  Dunn  &  Powell___173  Fed.,  899. 

Armour  &  Co.,  U.  S.  v 142  Fed.,  808 

Atchison,  T.  &  S.  F.  Ry.  Co.  v.  Prescott  &  A.  C. 
Ry.    Co 73  Fed.,  438. 

84  Fed.,  213. 


UNITED   STATES.  25 


Atchison,  T.  &  S.  F.  Ry.  Co.,  U.  S.  v 142  Fed.,  176. 

Barber  Asphalt  Paving  Co.,  Field  v 117  Fed.,  925. 

229  U.  S.,  1. 

Bauer  &  Cie  v.  O'Donnell 194  U.  S.,  618. 

Bay  (Cincinnati,  Portsmouth,  Big  Sandy,  and 

Pomeroy  Packet  Co.  v.) 200  U.  S.,  179. 

Beef  Trust   Cases.     See  U.    S.   v.    Swift  and 
U.  S.  v.  Armour. 

Bement  v.  National  Harrow  Co 186  U  S.,  70. 

Bigelow  v.  Calumet  &  Hecla  Min.  Co 155  Fed.,  869. 

167  Fed.,  704. 

167  Fed.,  721. 
Bishop  v.  American  Preservers'  Co 51  Fed.,  272. 

105  Fed.,  845. 
Blindell  v.  Hagan 54  Fed.,  40. 

56  Fed.,  696. 
Block  v.  Standard  Distilling  &  Distributing  Co_  95  Fed.,  978. 

Blount  Mfg.  Co.  v.  Yale  &  Towne  Mfg.  Co 166  Fed.,  555. 

Board  of  Trade  v.  Christie  Grain  &  S.  Co 116  Fed.,  944. 

121  Fed.,  608. 

125  Fed.,  161. 

198  U.  S.,  236. 
Bobbs-Merrill  Co.  u   Straus 139  Fed.,  155. 

210  U.  S.,  339. 
Booth  &  Co.  v.  Davis » 127  Fed.,  875. 

131  Fed.,  31. 

Bradley,  Fonotipia  Ltd.  v 171  Fed.,  951. 

Bradley,  Victor  Talking  Mach.  Co.  v 171  Fed.,  951. 

Buchanan,  Foot  v 113  Fed.,  156. 

Callam,  Northwestern  Consol.  Min.  Co.  v 177  Fed.,  786. 

Calumet  &  Hecla  Min.  Co.,  Bigelow  v 155  Fed.,  869. 

167  Fed.,  704. 

167  Fed.,  721. 
Camors-McConnell  Co.  v.  McConnell 140  Fed.,  412. 

140  Fed.,  987. 

152  Fed.,  321. 

Carter-Grume  Co.,  Cravens  v 92  Fed.,  479. 

Carter-Grume  Co.  v.  Peurrung 186  Fed.,  439. 

Case,  J.  L,  Threshing  Mach.  Co.,  Indiana  Mfg. 

Co.    v —148  Fed.,  21. 

154  Fed.,  365. 

Cassidy,  United  States  v 67  Fed.,  698. 

Central  Coal  &  Coke  Co.  v.  Hartman 111  Fed.,  96. 

Central    Railroad    &    Banking    Co.     of     Ga., 

Clark    v 50  Fed.,  338. 

Charles  E.  Wisewall,  The 74  Fed.,  802. 

86  Fed.,  671. 

Chattanooga  Foundry  &  Pipe  Works,   City  of 
Atlanta  v .101  Fed.,  900. 

127  Fed.,  23. 

203  U.  S.,  390. 
Chesapeake  &  Ohio  Fuel  Co.,  U.  S.  v 105  Fed.,  93. 

115  Fed.,  610. 


26  DECISIONS   ON   TRUSTS  AND  MONOPOLIES. 

Chicago  Wall  Paper  Mills  v.  General  Paper  Co_147  Fed.,  491. 
Christie  Grain  &  Stock  Co.,  Board  of  Trade  v_116  Fed.,  444. 

121  Fed.,  608. 

125  Fed.,  161. 

198  U.  S.,  236. 

Cilley  v.  United  Shoe  Mach.  Co 152  Fed.,  726. 

Cincinnati,  N.  O.  &  T.  P.  Ry.  Co.,  Thomas  v___62  Fed.,  808. 
Cincinnati,  Portsmouth,  Big  Sandy  &  Pomeroy 

Packet  Co.  v.  Bay 200  U.  S.,  179. 

City    of   Atlanta    v.    Chattanooga    Foundry    & 
Pipe  Works 101  Fed.,  909. 

127  Fed.,  23. 

203  U.  S.,  390. 
Clabaugh     v.     Southern     Wholesale     Grocers' 

Ass'n 181  Fed.,  706. 

Clarke  v.  Central  R.  R.  &  Banking  Co.  of  Ga___50  Fed.,  338. 

Cole  Transp.  Co.  v.  White  Star  Lane 186  Fed.,  63. 

Coal  Dealers'  Ass'n  of  Calif.,  U.  S.  v 85  Fed.,  252. 

Comer,  Waterhouse  v 55  Fed.,  149. 

Connolly,  Union  Sewer-Pipe  Co.  v ___99  Fed.,  354. 

184  U.  S.,  540. 

Continental  Tobacco  Co.,  Whitewell  v 125  Fed.,  454. 

Continental  Wall  Paper  Co.  v.  Voight 148  Fed.,  939. 

212  U.  S.,  227. 

Corning,  In  re 51  Fed.,  205 

Cravens  v.  Carter-Grume  Co 92  Fed.,  479. 

Creamery  Package  Mfg.  Co.,  Virtue  v 179  Fed.,  115. 

Danbury  Hatters'  Case.     See  Loewe  v.  Lawlor. 

Darius  Cole  Transp.  Co.  v.  White  Star  Line__186  Fed.,  63. 

Davis  et  al.,  A.  Booth  &  Co.  v 127  Fed.,  875. 

131  Fed.,  31. 

Debs,  United  States  v 64  Fed.,  724. 

Debs,  In  re .158  U.  S.,  564. 

Delaware,  L.  &  W.  R.  Co.  v.  Frank 110  Fed.,  689. 

Delaware,  L.  &  W.  R.  Co.  v.  Kutter 147  Fed.,  51. 

D.  E.  Loewe  &  Co.  v.  Lawlor 130  Fed.,  633. 

142  Fed.,  216. 

148  Fed.,  924. 

208  U.  S.,  283. 
Dennehy  v.  McNulta 86  Fed.,  825. 

77  Fed.,  900. 

Dr.  Miles  Med.  Co.  v.  Jaynes  Drug  Co 149  Fed.,  838. 

Dr.  Miles  Med.  Co.  v.  Park 164  Fed.,  803. 

220  U.  S.,  373. 
Dueber  Watch  Case  Mfg.  Co.  v.  Howard  Watch 

&  Clock  Co 55  Fed.,  851. 

66  Fed.,  637. 

Dunn  &  Powell  v.  Arkansas  Brokerage  Co 173  Fed.,  899. 

Du  Pont  de  Nemours  &  Co.  v.  U.  S 188  Fed.,  127. 

Eastman  Kodak  Co.,  Loeb  v 183  Fed.,  704. 

E.  C.  Knight  Co.,  U.  S.  v .60  Fed.,  306. 

60  Fed.,  934. 
156  U.  S.,  1. 


UNITED   STATES.  27 


E   Howard  Watch  &  Clock  Co.,  Dueber  Watch 

Case  Mfg.  Co.  v 55  Fed.,  851. 

56  Fed.,  637. 

Elliott,  United  States  v 62  Fed.,  801. 

64  Fed.,  27. 

Ellis  v.  Inman,  Poulsen  &  Co 124  Fed.,  956. 

131  Fed.,  182. 

Evans  v.  Lowenstein 69  Fed.,  908. 

Farmers'  Loan  &  Trust  Co.  v.  Northern  Pac. 

R.  R.  Co 60  Fed.,  803. 

Field  v.  Barber  Asphalt  &  Paving  Co 117  Fed.,  925. 

194  U.  S.,  618. 

Fonotipia  Ltd.  v.  Bradley 171  Fed.,  951. 

Foot  v.  Buchanan 113  Fed.,  156. 

Frank  (Delaware,  L.  &  W.  R.  Co.  v.) 110  Fed.,  689. 

Geiger,  Otis  Elevator  v .107  Fed.,  131. 

General  Electric  Co.  v.  Wise 119  Fed.,  922. 

General    Paper    Co.    v.    Chicago    Wall    Paper 

Mills .147  Fed.,  491. 

Gibbs  v.  McNeeley  (Shingle  Trust) 102  Fed.,  594. 

107  Fed.,  210. 
118  Fed.,  120. 
Goshen  Rubber  Works  v.  Single  Tube  Auto.  & 

Bicycle  Tire  Co ,166  Fed.,  431. 

Grand  Jury,  In  re 62  Fed.,  840. 

Grand  Jury,  In  re  charge  to 151  Fed.,  834. 

Green,  In  re 52  Fed.,  104. 

Greenhut,  United  States  v 50  Fed.,  469. 

Greer,  Mills  &  Co.  v.  Stoller 77  Fed.,  1. 

Griffin  &  Skelly  Co.,  U.  S.  Consol.  S.  R.  Co.  v__126  Fed.,  364. 

Gulf,  C.  &  S.  F.  Ry.  Co.  v.' Miami  S.  S.  Co .86  Fed.,  407. 

Hadley    Dean    Plate    Glass    Co.    v.    Highland 

Glass  Co 143  Fed.,  242. 

Hagan,  Blindell  v 54  Fed.,  40. 

56  Fed.,  696. 

Hale,  In  re 139  Fed.,  496. 

Hale  v.  Henkel 201  U.  S.,  43. 

Hale  v.  O'Connor  Coal  &  Sup.  Co 181  Fed.,  267. 

Harriman  v.  Northern  Securities  Co 132  Fed.,  464. 

134  Fed.,  331. 
197  U.  S.,  244. 

Harrington,  Pidcock  v 64  Fed.,  821. 

Hartman,  Central  Coal  &  Coke  Co.  v 111  Fed.,  96. 

Hartman  v.  John  D.  Parks  &  Sons  Co 145  Fed.,  358. 

153  Fed.,  24. 

Heike,  United  States  v 175  Fed.,  852. 

217  U.  S.,  42& 
Hench,  National  Harrow  Co.  v 1__76  Fed.,  667. 

83  Fed.,  36. 

84  Fed.,  22. 

Henkel,  Hale  v 201  U.  S.,  43. 

Henkel,  McAlister  v 201  U.  S.,  90. 

Highland  Glass  Co.,  Hadley  Dean  Plate  Glass 

Co.  v__  —143  Fed.,  242. 


28  DECISIONS   ON   TEUSTS  AND  MONOPOLIES. 

Hocking  Valley  Ry.  Co.,  Mannington  v 183  Fed.,  133. 

Hopkins,  United  States  v 82  Fed.,  529. 

84  Fed.,  1018. 

171  U.  S.,  578. 
Howard  Watch  &   Clock   Co.,   Dueber   Watch 

Case  Mfg.  Co.  v 55  Fed.,  851. 

66  Fed.,  637. 

In  re  Corning 51  Fed.,  205. 

In  re  Debs,  Petitioner 158  TJ.  S.,  564. 

U.  S.  v.  Debs 64  Fed.,  724. 

In  re  Grand  Jury 62  Fed.,  840. 

In  re  Grand  Jury — charge  to 151   Fed.,  834. 

In  re  Green 52  Fed.,  104. 

In  re  Hale 139  Fed.,  496. 

Hale  v.  Henkel 201  U.  S.,  43. 

In  re  Kittle 180  Fed.,  946. 

In  re  Terrell 51  Fed.,  213. 

Indiana  Mfg.  Co.  v.  J.  I.  Case  Threshing  Mach. 

Co 148  Fed..  21. 

154  Fed.,  365. 
Inman,  Poulsen  &  Co.,  Ellis  v 124  Fed.,  956. 

131  Fed.,  182. 

lola  Portland  Cement  Co.,  Phillips  v 125  Fed.,  593. 

Jayne,  Loder  v 142  Fed.,  1010. 

149  Fed..  21. 

Jaynes  Drug  Co..  Dr.  Miles  Med.  Co.  v 149  Fed..  838. 

Jellico  Mountain  Coke  &  Coal  Co.,  U.  S.  v 43  Fed.,  898. 

46  Fed.,  432. 

J.  I.  Case  Threshing  Mach.  Co.,  Indiana  Mfg. 
Co.  v 148  Fed.,  21. 

154  Fed.,  365. 
John  D.  Parks  &  Sons  Co.,  Hartman  v 154  Fed.,  895. 

153  Fed.,  24. 
Joint  Traffic  Association,  U.  S.  v 76  Fed.,  895. 

89  Fed.,  1020. 

171  U.  S.,  505. 

Kinsey  Co.  v.  Board  of  Trade 198  U.  S.,  236. 

Kissell,  United  States  v 173  Fed.,  823. 

218  U.  S.,  601. 

Kittle,  In  re 180  Fed.,  946. 

Klotz,  American  Biscuit  &  Mfg.  Co.  v 44  Fed.,  721. 

Knight  Co.,  United  States  v 60  Fed.,  306. 

60  Fed.,  934. 

156  U.  S..  1. 

Kutter,  Delaware,  L.  &  W.  R.  Co.  v___ 147  Fed.,  51. 

Laemuile  et  al.,  Motion  Picture  Patents  Co.  v_178  Fed.,  104. 

Larcus  v.  American  T,ob.  Co 163  Fed.,  712. 

Lawlor,  Loewe  V— L 130  Fed.,  633. 

142  Fed.,  216. 

148  Fed.,  924. 

187  Fed..  522. 

208  U.  S.,  283. 


UNITED  STATES.  29 

Lehigh  Valley  R.  Co.,  Meeker  et  al.  v 162  Fed.,  354. 

183  Fed.,  548. 

Leonard  v.  Abner-Drury  Brewing  Co 25  D.  C.  App.,  161. 

Licorice   Paste   Trust.     See   U.    S.   v.   MacAn- 

drews  &  Forbes  Co 

Loder  r.  Jayne 142  Fed.,  1010. 

149  Fed.,  21. 

Loeb  r.  Eastman  Kodak  Co 183  Fed.,  704. 

Loewe   r.    Lawlor 130  Fed.,  633. 

142  Fed.,  216. 

148  Fed.,  924. 

187  Fed.,  522. 

208  U.  S.,  283. 

Lowenstein  v.  Evans 69  Fed.,  908. 

Lowry  r.  Tile,  Mantel  &  Grate  Ass'n 98  Fed.,  817. 

106  Fed.,  38. 
Lowry,  W.  W.  Montague  &  Co.  v 115  Fed.,  27. 

193  U.  S.,  38. 

McAlister  v.  Henkel 201  U.  S.,  90. 

MacAndrews  &  Forbes  Co.,  U.  S.  v 149  Fed.,  823. 

212  U.  S.,  585. 
McConnell,  Camors-McConnell  Co.  v 140  Fed.,  412. 

140  Fed.,  987. 

152  Fed.,  321. 
McXeeley,  Gibbs  v 102  Fed.,  594. 

107  Fed.,  210. 
118  Fed.,  120. 

McNulta,  Dennehy  v 86  Fed.,  825. 

Mannington  v.  Hocking  Valley  Ry.  Co.  et  al—183  Fed.,  133. 
Meeker  et  al.  v.  Lehigh  Valley  R.  Co 162  Fed.,  354. 

183  Fed.,  548. 
Metcalf  v.  American  School  Furniture  Co 108  'Fed.,  909. 

113  Fed.,  1020. 

122  Fed.,  115. 

Miami  S.  S.  Co.,  Gulf  C.  &  S.  F.  Ry.  Co.  v 86  Fed.,  407. 

Michigan  Aluminum  F.  Co.  v.  Aluminum  Cast- 
ings Co 190  Fed.,  879. 

Miles  Medical  Co.  v.  Park  &  Sons  Co 220  U.  S.,  373. 

Milwaukee  Rubber  Works,  Rubber  Tire  Wheel 

Co.  v 142  Fed.,  531. 

154  Fed.,  358. 

Mines  v.  Scribner 147  Fed.,  927. 

Minnesota  v.  Northern  Securities  Co 123  Fed.,  692. 

194  U.  S.,  48. 

Monarch  Tob.  Works  v.  American  Tob.  Co 165  Fed.,  774. 

Montague  &  Co.  v.  Lowry J.15  Fed.,  27. 

193  U.  S.,  38. 

Moore  v.  United  States 85  Fed.,  465. 

Motion  Picture  Patents  Co.  v.  Laemuile 178  Fed.,  104. 

Motion  Picture  Patents  Co.  v.  Ullman .186  Fed..  174. 

Nash  v.  U.  S 229  U.  S.,  373. 

National  Folding-Box  &  Paper  Co.  v.  Robert- 

son__  —99  Fed.,  985. 


30  DECISIONS  ON   TRUSTS  AND  MONOPOLIES. 

National  Harrow  Co.  v.  Hench 76  Fed.,  667. 

83  Fed.,  36. 

84  Fed.,  226. 
National  Harrow  Co.  v.  Quick 67  Fed.,  130. 

74  Fed.,  443. 

National  Harrow  Co.,  Bement  v 186  U.  S.,  70, 

National  Harrow  Co.,  Strait  v 51  Fed.,  819. 

National  Window  Glass  Jobbers'  Ass'n,  Wheeler 

Stenzel  Co.  v 152  Fed.,  864. 

Nelson,  United  States  v 52  Fed.,  646. 

Nelson  v.  United  States 201  U.  S.,  92. 

Northern  Securities  Co.,  Harriman  v 132  Fed.,  464. 

134  Fed.,  331. 

197  U.  S.,  244. 
Northern  Securities  Co.,  U.  S.  v 120  Fed.,  721. 

193  U.  S.,  197. 
Northern  Securities  Co.,  Minnesota  v 123  Fed.,  692. 

194  U.  S.,  48. 
Northwestern  Consol.  Min.  Co.  v.  Wm.  Callarn 

&  Son 177  Fed.,  786. 

O'Connor  Coal  &  Sup.  Co.,  Hale  v 181  Fed.,  267. 

O'Donnell,  Bauer  &  Cie  v 229  U.  S.,  1. 

Otis  Elevator  Co.  v.  Geiger 107  Fed.,  131. 

Pacific  &  Arctic  Co.,  U.  S.  v 228  U.  S.,  87. 

Park  &  Sons  Co.,  Dr.  Miles  Med.  Co.  v 164  Fed.,  803. 

220  U.  S.,  373. 
Park,  John  D.,  &  Sons  Co.,  Hartman  v 145  Fed.,  358. 

153  Fed.,  24. 

Patten,  U.  S.  1; 187  Fed.,  664. 

Patterson,  United  States  v 55  Fed.,  605. 

59  Fed.,  280. 

Pemia.  R.  Co.,  American  Union  Coal  Co.  v 159  Fed.,  278. 

Penna.  Sugar  Ref.  Co.  v.  American  Sugar  Ref. 
Co 160  Fed.,  144. 

166  Fed.,  254. 

People's  Tob.  Co.  v.  American  Tob.  Co ,170  Fed.,  396. 

Peurrung,  Carter-Grume  Co.  v 86  Fed.,  439. 

Phillips  v.  Portland  Cement  Co 125  Fed.,  593. 

Pidcock  v.  Harrington __64  Fed.,  821. 

Prescott  &  A.  C.  R.  Co.  v.  Atchison,  T.  &  S.  F. 

R.  Co 73  Fed.,  438. 

84  Fed.,  213. 

Pungs,  American  Brake  Beam  Co.  v 141  Fed.,  923. 

Quick,  National  Harrow  Co.  v 67  Fed.,  130. 

74  Fed.,  236. 
R.  J.  Reynolds  Tob.   Co.  v.  Allen  Bros.  Tob. 

Co -151  Fed.,  819. 

Reading  Company,  U.  S.  v -183  Fed.,  427. 

Reardon  &  Sons  Co.,  John,  v  U.  S 191  Fed.,  454. 

Rice  v.  Standard  Oil  Company 134  Fed.,  464. 

Robertson   v.   National   Folding-Box   &   Paper 

Co 99  Fed.,  985. 

Robinson  v.  Suburban  Brick  Co.— 127  Fed.,  804. 


UNITED   STATES.  31 

Rubber  Tire  Wheel  Co.  v.  Milwaukee  Rubber 

Works  Co 142  Fed.,  531. 

154  Fed.,  358. 

Scribner,  Mines  v 147  Fed.,  927. 

Shawnee  Compress  Co.  v.  Anderson 87  Pac.,  315. 

209  U.  S.,  423. 
Shingle  Trust.     See  Gibbs  v.  McNulta. 

Single  Tube  Auto.  &  Bicycle  Tire  Co.,  Goshen 

Rubber  Works  v 166  Fed.,  431. 

Southern   Indiana   Exp.   Co.  v.   United   States 

Exp.  Co 88  Fed.,  659. 

92  Fed.,  1022. 

Southern  Railway,  Tift  v ____138  Fed.,  753. 

Southern     Wholesale     Grocers'     Ass'n,     Cla- 

baugh  v 181  Fed.,  706. 

Standard      Distilling      &      Distributing      Co., 

Block  v 95  Fed.,  978. 

Standard  Oil  Company,  Rice  v 134  Fed.,  464. 

Standard  Oil  Co.  of  New  Jersey,  U.  S.  v 152  Fed.,  290. 

173  Fed.,  177. 
221  U.  S.,  1. 

Standard  Sanitary  Mfg.  Co.  v.  U.  S 191  Fed.,  172. 

State  of  Minnesota  v.  Northern  Securities  Co__123  Fed.,  692. 

194  U.  S.,  48. 

Steers  et  al.  v.  U.  S 192  Fed.,  1. 

Stoller  (Greer,  Mills  &  Co.  v.) 77  Fed.,  1. 

Strait  v.  National  Harrow  Co 51  Fed.,  819. 

Straus,  Bobbs-Merrill  Co.  v 139  Fed.,  155. 

210  U.  S.,  339. 
Strauss  et  al.  r.  American  Publishers'  Ass'n__,TL       S.       Supreme 

Court,      Dec.      1 , 
1913. 

Strout  v.  United  Shoe  Machinery  Co 195  Fed.,  313. 

Suburban  Brick  Co.,  Robinson  v 127  Fed.,  804. 

Swift  &  Co.,  United  States  v 122  Fed.,  529. 

188  Fed.,  92. 
196  U.  S.,  375. 
Terminal  Railroad  Ass'n  of  St.  Louis,  U.  S.  v__.  224  U.  S.,  383. 

Terrell,  In  re 51  Fed.,  213. 

Thomas  v.  Gin.,  N.  O.  &  T.  P.  Ry.  Co 62  Fed.,  803. 

Thomson  v.  Union  Castle  Mail  S.  S.  Co 149  Fed.,  933. 

166  Fed.,  251. 

Tift  v.  Southern  Ry  Co 138  Fed.,  753. 

Tile,  Mantel  &  Grate  Ass'n  v.  Lowry .98  Fed.,  817. 

106  Fed.,  38. 

Tobacco  Trust  Cases.  See  U.  S.  v.  American 
Tobacco  Co.,  Hale  v.  Henkel,  McAlister  v. 
Henkel,  and  U.  S.  v.  MacAndrews  &  Forbes 
Co. 

Trans-Missouri  Freight  Ass'n,  U.  S.  v 53  Fed.,  440. 

58  Fed.,  58. 
166  U.  S.,  290. 

Tribolet,  United  States  v 95  Pac.,  85. 

Ullman,  Motion  Picture  Patents  Co.  V—         ...186  Fed.,  174. 


32  DECISIONS   ON   TRUSTS  AND  MONOPOLIES. 

Union  Castle  Mail  S.  S.  Co.,  Thomson  v 149  Fed.,  933. 

166  Fed..  251. 

CJnion  Pacific  Coal  Co.  v.  U.  S 173  Fed.,  737. 

Union  Pacific  R.  R.  Co.  v.  U.  S 188  Fed.,  102. 

Union  Sewer-Pipe  Co.  v.  Connolly 99  Fed.,  354. 

184  U.  S.,  540. 
United  Fruit  Co.,  American  Banana  Co.  v 153  Fed.,  943. 

160  Fed.,  184. 

166  Fed.,  261. 

213  U.  S.,  347. 

United  Shoe  Mach.  Co.,  Cilley  v 152  Fed.,  726. 

United  Shoe  Mach.  Co.  v.  Strout 195  Fed.,  313. 

U.  S.  v.  Addyston  Pipe  &  Steel  Co 78  Fed.,  712. 

85  Fed.,  271. 

175  U.  S.,  211. 

U.  S.  v.  Agler 62  Fed.,  824. 

U.  S.  v.  American  Naval  Stores  Co 172  Fed.,  455. 

186  Fed.,  592. 
U.  S.  v.  American  Tobacco  Co 164  Fed.,  700. 

221  U.  S'.,  106. 

191  Fed.,  371. 

U.  S.  v.  Armour  &  Co 142  Fed.,  808. 

U.  S.  v.  Atchison,  T.  &  S.  F.  Ry.  Co 142  Fed.,  176. 

U.  S.  v.  Cassidy 67  Fed.,  698. 

U.  S.  v.  Chesapeake  &  Ohio  Fuel  Co 105  Fed.,  93. 

115  Fed.,  610. 

U.  S.  v.  Coal  Dealers'  Assn.  of  Calif 85  Fed.,  252. 

U.  S.  v.  Debs 64  Fed.,  724. 

In  re  Debs 158  U.  S.,  564. 

U.  S.,  v.  Du  Pont  de  Nemours  &  Co 188  Fed.,  127. 

U.  S.  v.  E.  C.  Knight  Co 60  Fed.,  306. 

60  Fed.,  934. 

156  U.  S.,  1. 

U.  S.  v.  Elliott 62  Fed.,  801. 

64  Fed.,  27. 
U.   S.  v.  Freight  Association.     (See  U.   S.   v. 

Trans-Missouri  Freight  Association.) 
U.   S.  v.  General  Paper  Co.     (See  Nelson  v. 
U.  S.  and  Alexander  v.  U.  S.) 

U.  S.  u  Greenhut 50  Fed.,  469. 

U.  S.  v.  Heike 175  Fed.,  852. 

217  U.  S.,  423. 
U.  S.  v.  Hopkins 82  Fed.,  529. 

84  Fed.,  1018. 

171  U.  S.  578. 
U.  S.  Jellico  Mountain  Coke  &  Coal  Co 43  Fed.,  898. 

46  Fed.,  432. 
U.  S.  v.  Joint  Traffic  Association 76  Fed.,  895. 

89  Fed.,  1020. 

171  U.  S.,  505. 
U.  S.  v.  Kissell__     173  Fed.,  823. 

218  U.  S.,  601. 
U   S.  v.  MacAndrews  &  Forbes  Co 149  Fed.,  823. 

212  U.  S.,  585. 
U.  S.  u.  Nash__  229  U.  S.  373. 


UNITED   STATES.  33 

U.  S.  v.  Nelson 52  Fed..  646. 

Nelson  v.  United  States 201  U.  S.,  92. 

U.  S.  v.  Northern  Securities  Company 120  Fed.,  721. 

193  U.  S.,  197. 

U.  S.  v.  Pacific  &  Arctic  Company 228  U.  S'.,  87. 

U.  S.  v.  Patten 187  Fed.,  664. 

226  U.  S.,  525. 
U.  S.  v.  Patterson 55  Fed.,  605. 

59  Fed.,  280. 
U.  S.  v.  Reading  Company 183  Fed.,  427. 

226  U.  S.,  324. 

228  U.  S.,  158. 

U.  S.  v.  John  Reardon  &  Sons  Co 191  Fed.,  454. 

U.  S.  v.  Standard  Oil  Co.  of  New  Jersey 152  Fed.,  290. 

173  Fed.,  177. 

221  U.  S.,  1. 
TJ.  S.  v.  Standard  Sanitary  Mfg.  Co 191  Fed.,  172. 

226  U.  S.,  20. 

U.  S.  v.  Hteers  et  al 192  Fed.,  1. 

U.  S.  v.  Swift  &  Co 122  Fed.,  529. 

188  Fed.,  92. 

196  U.  S.,  375. 
U.  S.  v.  Trans-Missouri  Freight  Ass'n 53  Fed.,  440. 

58  Fed.,  58. 

166  U.  S.,  290. 

U.  S.  v.  Tribolet 95  Pac.,  85. 

U.  S.  v.  Virginia-Carolina  Chemical  Co 163  Fed.,  66. 

U.  S.  v.  Winslow  et  al 195  Fed.,  578. 

227  U.  S.,  202. 
U.  S.  v.  Workingmen's  Amalgamated  Council_54  Fed.,  994. 

57  Fed.,  85. 

U.  S.,  Alexander  v 201  U.  S.,  117. 

U.  S.,  Anderson  v 82  Fed.,  998. 

171  U.  S.,  604. 

U.  S.,  Moore  v 85  Fed.,  465. 

U.  S.,  Union  Pacific  Coal  Co.  v 173  Fed.,  737. 

U.  S.,  Union  Pacific  R.  R.  Co.  v 188  Fed..  102. 

226  U.  S'.,  61-470. 
U.     S.     Consolidated     S.     R.     Co.     v.     Griffin- 

Skelly  Co 126  Fed.,  364. 

U.  S.  Exp.  Co.,  Southern  Ind.  Exp.  Co.  v 88  Fed.,  659. 

92  Fed.,  1022. 
United  States  Tob.  Co.  v.  American  Tob.  Co___163  Fed.,  712 

Victor  Talking  Mach.  Co.  v.  Bradley 171  Fed.,  951. 

Virginia-Carolina  Chemical  Co.  v.  U.  S 163  Fed.,  66. 

Virtue  v.  Creamery  Package  Mfg.  Co 179  Fed.,  115. 

227  U.  S.,  8. 
Voight,  Continental  Wall  Paper  Co.  v 148  Fed.,  939. 

212  U.  S.,  227. 
Ware-Kramer  Tob.  Co.  v.  American  Tob.  Co__178  Fed.,  117. 

180  Fed.,  160. 

Waterhouse  v.  Comer 55  Fed..  149. 

Weisert  Bros.  Tob.  Co.  v.  American  Tob.  Co___163  Fed.,  712. 
16491—13 3 


34  DECISIONS   ON   TRUSTS  AND  MONOPOLIES. 

Wheeler  Stenzel  Co.  r.  National  Window  Glass 

Jobbers'  Ass'n 152  Fed.,  864. 

White  Star  Line,  Cole  Transp.  Co.  v 186  Fed.,  63. 

Whitwell  v.  Continental  Tob.  Co 125  Fed.,  454. 

Winslow  et  al.  v.  U.  S 195  Fed.,  578. 

Wise,  General  Electric  Co.  v ''. 119  Fed.,  922. 

Wisewall,  The  Charles  E 74  Fed.,  802. 

86  Fed.,  671. 
Workingnien's  Amalgamated  Council,  U.  S.  v__54  Fed.,  994. 

57  Fed.,  85. 
Yale  &  Towne  Mfg.  Co.,  Blount  Mfg.  Co.  v 166  Fed.,  555. 

NOTE. — Owing  to  the  fact  that  there  are  four  volumes  of  anti- 
trust decisions  in  print  and  full  table  of  cases  has  been  given 
above,  only  a  few  illustrative  cases  of  leading  propositions  are 
here  separately  cited.  Some  very  late  cases  are  digested. — Com- 
piler. 

RESALE  CONTRACTS. 

PRICE  FIXING. 

United  States  v.  Greenhnt  et.  al 51  Fed.,  205. 

United  States  -v.  Greenhnt  et  al 51  Fed.,  213. 

American  Soda-Fountain  Co.  v.  Green  et  al 69  Fed.,  333. 

Henry  v.  A.  B.  Dick  Co 223  U/  S.,  6. 

Bobbs-Merrill  Co.  v.  Strauss  et  al 210  U.  S.,  339. 

Bauer  &  Cie.  v.  O'Donnell 229  U.  S..  1. 

Dr.  Miles  Medical  Co.  v.  Park  &  Sons  Co 220  U.  S.,  373. 

Strauss  et  al.  r.  American  Publishers'  Ass'n Supreme   Court   U. 

S.,   Dec.   1,  1913. 

Bobbs-Merrill  Co.  r.  Strauss  et  al 210  U.  S.,  339. 

STATEMENT. 

This  action  arose  under  a  resale  price  fixing  notice 
printed  in  a  copyright  book  stating  that  any  sale  at  a 
less  price  will  be  treated  as  in  infringement  of  the  copy- 
right. 

OPINION. 

There  are  differences  between  the  patent,  and  the  copy- 
right, statutes  in  the  extent  of  the  protection  granted  by 
them.     The  sole  right  to  vend  granted  by  section  4952, 
Kevised  Statutes,  does  not  secure  to  the  owner  of  the 
Price  fixing  un-  copyright  the  right  to  qualify  future  sales  by  his  vendee 
faw  iSeffectuai  or  to  limit  or  'restrict  such  f uture  sales  at  a  specified 
price,  and  a  notice  in  the  book  that  a  sale  at  a  different 
price  will  be  treated  as  an  infringement  is  ineffectual  as 
against  one  not  bound  by  contract  or  license  agreement. 

Dr.  Miles  Medical  Co.  v.  Park  &  Sons  Co__     __220  U.  S.,  373. 


UNITED  STATES.  35 

STATEMENT. 

The  Dr.  Miles  Medical  Co.  had  an  elaborate  resale  and 
price-fixing  contract  for  their  medicines,  and  this  action 
was  to  enjoin  defendant  from  cutting  the  price  or  urging 
others  so  to  do  or  from  "  advertising,  selling,  or  offering 
for  sale  the  remedies  obtained,"  by  means  at  less  "than 
the  established  retail  price  thereof." 

OPINION. 

A  system  of  contracts  between  manufacturers  and  may'notflx6* 
wholesale  and  retail  merchants  by  which  the  manuf  ac-  saie.es  °*  re 
turers  attempt  to  control  not  merely  the  prices  at  which 
its  agents  may  sell  its  products,  but  the  prices  for  all 
sales  by  all  dealers  at  wholesale  or  retail,  whether  pur- 
chasers or  subpurchasers,  eliminating  all  competition  and 
fixing  the  amount  which  the  consumer  shall  pay,  amounts 
to  restraint  of  trade,  and  is  invalid  both  at  common  law 
and.  so  far  as  it  affects  interstate  commerce,  under  the 
Sherman  Antitrust  Act  of  July  2,  1890;  and  so  held  as 
to  the  contracts  involved  in  this  case. 

A  manufacturer  of  unpatented  articles  can  not  by  rule 
or  notice,  in  absence  of  statutory  right,  fix  prices  for 
future  sales,  even  though  the  restrictions  be  known  to 
purchasers.  Whatever  rights  the  manufacturer  may 
have  in  that  respect  must  be  by  agreements  that  are  law- 
ful. 

Although  the  earlier  common-law  doctrine  in  regard 
to  restraint  of  trade  has  been  substantially  modified,  the 
public  interest  is  still  the  first  consideration;  to  sustain 
the  restraint  it  must  be  reasonable  as  to  the  public  and 
parties  and  limited  to  what  is  reasonably  necessary,  un- 
der the  circumstances,  for  the  covenantee;  otherwise  re- 
straints are  void  as  against  public  policy. 

Agreements  or  combinations  between  dealers  having 
for  their  sole  purpose  the  destruction  of  competition  and 
fixing  of  prices  are  injurious  to  the  public  interests  and 
void;  nor  are  they  saved  by  advantages  which  the  par- 
ticipants expect  to  derive  from  the  enhanced  price  to  the 
consumer. 


Bauer  &  Cie.  v.  O'Domiell 229  U.  S.,  1. 

STATEMENT. 

A  patented  article  was  resold  by  the  defendant  at 
less  than  the  price  fixed  in  a  notice  printed  on  the  same 
by  the  manufacturer. 


36  DECISIONS  ON   TRUSTS  AND  MONOPOLIES. 

OPINION. 

notefixeresafcy  -^  patentee  may  not  by  notice  limit  the  price  at  which 
future  retail  sales  of  the  patented  article  may  be  made, 
such  article  being  in  the  hands  of  the  retailer  by  purchase 
from  a  jobber  who  has  paid  to  the  agent  of  the  patentee 
the  full  price  asked  for  the  article  sold. 

Where  the  transfer  of  the  patented  article  is  full  and 
complete  an  attempt  to  reserve  the  right  to  fix  the  price 
at  which  it  shall  be  resold  by  the  vendee  is  futile  under 
the  statute.  It  is  not  a  license  for  qualified  use,  but  an 
attempt  to  unduly  extend  the  right  to  vend. 

These  last  three  cases  (Bobbs-Merrill  Co.  v.  Strauss, 
210  U.  S.,  339 ;  Dr.  Miles  Medical  Co.  v.  Park  &  Sons  Co., 
220  U.  S.,  373,  and  Bauer  v.  O'Donnell,  229  U.  S.,  1) 
form  a  distinct  trinity  and  express  the  views  of  the 
Supreme  Court  of  the  United  States  under  existing  law 
on  the  subject  of  resale  and  price-fixing  and  price-main- 
tenance contracts.  The  Bobbs-Merrill  case  relates  to  copy- 
.  righted  articles,  while  the  Dr.  Miles  case  relates  to  nn- 
patented  articles  entering  into  interstate  commerce,  and 
the  O'Donnell  case  applies  to  patented  articles.  These 
cases  cover  the  whole  subject  of  price-fixing  contracts. 

LABOR  CASES. 

United  States  r-.   Workingmen's  Amalgamated 

Council  of  New  Orleans  et  al 54  Fed.,  994. 

Wuterhouse  et  al  v.  Comer 55  Fed.,  149. 

United  States  v.  Debs  et  al 64  Fed.,  724. 

United  States  v.  Agler — <>2  Fed.  Rep.,  82. 

United  States  v.  Elliott 32  Fed.  Rep.,  801; 

64  Fed.  Rep.,  27. 

United  States  v.  Debs  et  al 64  Fed.  Rep.,  724. 

United  States  v.  Cassidy --67  Fed.  Rep.,  698. 

In  re  Debs,  Petitioner —158  U.  S.,  564. 

Loewe  v.  Lawlor 208  r.  S.,  274. 

See  also 

Commonwealth  v.  Hunt 4     Metcalf's     Rep., 

111. 

Vegelahn  v.  Guntner .1(57  Mass.,  92. 

State  v.  Coyle  (Okla.) KJO  Pac.  Rep.,  316. 

United  States.?.'.  John  S.  Steers  et  al.  Indictment  re- 
turned February  17,  1910,  in  Eastern  District  of  Ken- 
tucky, charging  conspiracy  to  restrain  trade.  This  is  the 
so-called  "Night  Rider "  case  where  the  restraint  con- 
sisted in  preventing  the  shipment  of  tobacco  in  inter- 
state commerce  by  means  of  violence  and  intimidation. 


UNITED   STATES. 

After  the  overruling  of  demurrers  and  various  pleas  in 
abatement  a  trial  was  had,  and  on  April  16,  1910,  a 
verdict  of  guilty  was  returned  as  to  eight  of  twelve  de- 
fendants and  fines  aggregating  $3,500  were  imposed. 
The  case  was  appealed  to  Circuit  Court  of  Appeals,  and 
the  verdict  was  affirmed  December  5,  1911.  May  11, 
1912,  the  fines  were  commuted  by  the  President  to  pay- 
ment of  costs  of  suit.  (See  cases  under  Kentucky,  seq.) 

CASES   SHOWING  POWER  OF   CONGRESS   UNDER  ANTI- 
TRUST ACT. 

Addystone  Pipe  Co.  Case__  —175  TJ.  S.,  245. 

American  Tobacco  Co.  Case__  —221  U.  S.,  180-181. 

Henient  v.  National  Harrow  Co 186  U.  SM  92. 

Central  Ohio  Salt  Co.  r.  Guthrie 35 Ohio  St., 666.  672. 

(Quoted  and  approved  in  Northern  Securities  case.) 

Charles  River  Bridge  v.  Warren  Bridge 11  Pet.,  567. 

Gibbs  r.  Baltimore  Gas  Co 130  U.  S.,  408-400. 

(Jumpers,  r.  Bucks  Stove  &  Range  Co 221  U.  S.,  438-439. 

Henry  r.  A.  B.  Dick  Co__          223   U.    S. ;    224   U. 

S.,  6-12. 

In  re  Greene 52  Fed.  R.,  115. 

Montagne  v.  Lowry 193  U.  S.,  45. 

Morris  Run  Coal  Co.  v.  Barclay  Coal  Co 68  Pa.  St.,  173,  186. 

(Quoted  and  approved  in  Northern  Securities  case.) 

National  Cotton  Oil  Co.  v.  Texas 197  U.  S.,  128-129. 

Northern  Securities  Case 193  U.  S.,  351-352. 

IVarsall  r.  Great  Northern  Railway  Co 161  U.  S.,  676. 

Standard    Oil    Case 221  U.  S.,  50. 

Swift  &  Co.  r.  United  States 196  U.  S.,  395. 

United  States  r.  Joint  Traffic  Asso __171  U.  S.,  -568. 

United  States  r.  Joint  Traffic  Assn__  171  U.  S.,  566-568. 

United  States  r.  Swift  &  Co 122  Fed  Rep.,  534. 

United  States  v.  Trans-Missouri  Freight  Assn__166  U.  S.,  312,  313. 
United  States  v.  Trans-Missouri  Freight  Assn__.166  U.  S.,  316. 
United   States    r.   World ngm en's  Amalgamated 

Council —  54  Fed  R..  990. 

Whitwell  v.  Continental  Tobacco  Co 125 Fed. R. 457-458. 

GENERAL  POWER  OF   CONGRESS;   SOME   OTHER  CASES. 

Blake  r.  McClung .172  U.  S.,  239. 

Brown  et  al.  v.  Maryland 12  Wheat.  413, 1827. 

Farmers'    and    Mechanics'    National    Bank     r. 

Desiring..  .--91  U.  S.,  29. 

Gibbons  r.  ()gden__ 9  Wheat,  1, 1824. 

In  re  Rahrer,  Petitioner 140  U.  S.,  545. 

Leisy  v.  Hardin .135  U.  S.,  100. 

McCulloch  v.  The  State  of  Maryland  et  al 4  Wheat.,  316. 1819. 

Mnnn  r.  Illinois..  __.94  U.  S.,  113. 


37 


38  DECISIONS   ON   TRUSTS  AND  MONOPOLIES. 

Nicol  r.  Ames;  In  re  Nichols;  Skillen  v.  Ames 

and  Ingwersen  v.  United  States 173  TJ.  SM  50ft. 

Pollock  v.  Farmers'  Loan  &  Trust  Co. ;  Hyde  v. 

Continental  Trust  Co 158  U.  S.,  601. 

Regan  r.  Mercantile  Trust  Co 154  U.  S.,  413. 

llobbins  r.  Shelby  County  Taxing  District 120  U.  S.,  480. 

Trade-Mark  Cases 100  TJ.  S.,  82. 

Walling  v.  The  State  of  Michigan 116  U.  S.,  446. 


ALABAMA. 

CONSTITUTION,    1901. 

SEC.  103.  The  legislature  shall  provide  by  law  for  the 
regulation,  prohibition,  or  reasonable  restraint  of  com- 
mon carriers,  partnerships,  associations,  trusts^  monopo- 
lies, and  combinations  of  capital,  so  as  to  prevent  them 
or  any  of  them  from  making  scarce  articles  of  necessity, 
trade,  or  commerce,  or  from  increasing  unreasonably  the 
cost  thereof  to  the  consumer,  or  preventing  reasonable 
competition  in  any  calling,  trade,  or  business. 

SEC.  233.  No  corporation  shall  engage  in  any  business 
other  than  that  expressly  authorized  in  its  charter  or 
articles  of  incorporation. 

SEC.  234.  No  corporation  shall  issue  stock  or  bonds 
except  for  money,  labor  done,  or  property  actually  re- 
ceived ;  and  all  fictitious  increase  of  stock  or  indebtedness 
shall  be  void.  The  stock  and  bonded  indebtedness  of  cor- 
porations shall  not  be  increased  except  in  pursuance  of 
general  laws,  nor  without  the  consent  of  the  persons  hold- 
ing the  larger  amount  in  value  of  stock,  first  obtained  at 
a  meeting  to  be  held  after  thirty  days'  notice,  given  in 
pursuance  of  law. 

STATUTES. 

SEC.  7579.  Any  person  or  corporation  who  engages  or 
agrees  with  other  persons  or  corporations,  or  enters  into, 
directly  or  indirectly,  any  combination,  pool,  trust,  or 
confederation,  to  regulate  or  fix  the  price  of  any  article 
or  commodity  to  be  sold  or  produced  within  this  state, 
or  any  person  or  corporation  who  enters  into,  becomes  a 
member  of.  or  party  to,  any  pool,  agreement,  combina- 
tion or  confederation,  to  fix  or  limit  the  quantity  of  any 
article  or  commodity  to  be  produced,  manufactured, 
mined,  or  sold,  in  this  state,  must,  on  conviction,  be  fined 
not  less  than  five  hundred  nor  more  than  two  thousand 
dollars. 

39 


40  LAWS   ON   TEUSTS  AND   MONOPOLIES. 

SEC.  7580.  Any  corporation  chartered  under  the  laws 
of  this  state,  or  any  officer,  stockholder,  agent,  or  em- 
ploye of  any  such  corporation,  which  enters  into  any 
combination  with  any  other  corporation  or  person  with 
the  intent  to  place  the  management  or  control  of  any 
such  corporation  in  the  hands  of  another  corporation  or 
person,  and  thereby  limit  or  fix  the  price,  restrict  or 
diminish  the  production,  manufacture,  sale,  use,  or  con- 
sumption of  any  article  of  commerce,  must,  on  conviction, 
be  fined  not  less  than  five  hundred  nor  more  than  two 
thousand  dollars. 

SEC.  7581.  Any  person  or  corporation,  domestic  or  for- 
eign, which  shall  restrain  or  attempt  to  restrain  the  free- 
dom of  trade  or  production,  or  which  shall  monopolize, 
or  attempt  to  monopolize  the  production,  control,  or  sale 
of  an}7  commodity,  or  the  prosecution,  management,  or 
control  of  any  kind,  class  or  description  of  business;  or 
which  shall  destroy,  or  attempt  to  destroy,  competition 
in  the  manufacture  or  sale  of  a  commodity,  shall  be 
guilty  of  a  misdemeanor,  and,  upon  conviction,  shall  be 
fined  not  less  than  five  hundred  nor  more  than  two 
thousand  dollars  for  each  offense. 

SEC.  7582.  The  four  preceding  sections  must  be  given  in 
special  charge  to  the  grand  jury. 

SEC.  2487.  Any  person,  firm,  or  corporation  injured  or 
damaged  by  an  unlawful  trust,  combine,  or  monopoly,  or 
its  effect,  direct  or  indirect,  may,  in  each  instance  of  such 
injury  or  damage,  recover  the  sum  of  five  hundred  dollars 
and  all  actual  damages  from  any  person,  firm,  or  corpora- 
tion creating,  operating,  aiding  or  abetting  such  a  trust, 
combine,  or  monopoly;  and  ma}7  maintain  the  action 
therefor  against  any  one  or  more  of  the  parties  to  the 
trust,  combine,  or  monopoly,  or  their  attorneys,  officers, 
or  agents,  who  aid  or  abet  such  trust,  combine  or  monop- 
oly. And  all  such  actions  may  be  prosecuted  to  final 
judgment  or  decree  against  any  one  or  more  of  the  de- 
fendants thereto,  notwithstanding  there  may  be  a  dis- 
missal, acquittal,  verdict,  judgment,  or  decree  in  favor  of 
one  or  more  of  the  defendants. 

SEC.  2488.  Actions  under  the  preceding  section  may  be 
brought  in  any  county  where  the  trust,  combine,  or 
monopoly  was  formed,  or  where  it  exists  or  is  carried  on, 
promoted,  operated,  practiced,  employed,  used  or  en- 
joyed ;  or  in  any  county  in  which  either  of  the  defendants 


ALABAMA.  41 

may  have  a  domicile,  or  where  an  officer  or  agent  of  any 
defendant  corporation  may  be  found. 

UNLAWFUL  POOLING  OF  FREIGHTS. 

Any  officer,  agent,  or  servant  of  a  person  or  corpora- 
tion operating  a  railroad,  who  aids  in  making  or  carry- 
ing out  an  agreement  between  railroads,  commonly  called 
a  pool,  for  the  division  between  themselves  of  the  freight- 
carrying  business  of  any  place  in  this  state,  whereby  trade 
is  restrained  by  the  establishment  of  extortionate  rates 
and  the  prevention  of  free  competition,  unless  such  agree- 
ment has  been  approved  by  the  railroad  commissioners, 
must,  on  conviction,  be  fined  not  less  than  fifty,  nor  more 
than  two  hundred  dollars.  (Act  of  1883,  sec.  2.) 

INSURANCE. 

That  every  contract  or  policy  of  insurance  made  or 
issued  after  the  passage  of  this  act  shall  be  construed  to 
mean  that  in  the  event  of  loss  or  damage  thereunder,  the 
assured  or  beneficiary  thereunder  may,  in  addition  to  the 
actual  loss  or  damage  suffered,  recover  twenty-five  per 
cent  of  the  amount  of  such  actual  loss,  any  provision  or 
stipulation  in  such  contract  or  policy  to  the  contrary  not- 
withstanding; Provided,  at  the  time  of  the  making  of 
such  contract  or  policy  of  insurance,  or  subsequently  be- 
fore the  time  of  trial  the  insurer  belonged  to,  or  was  a 
member  of,  or  in  any  way  connected  with,  any  tariff 
association  or  such  like  thing  by  whatever  name  called 
or  who  had  any  agreement  or  had  any  understanding 
with  any  -other  person,  corporation  or  association  en- 
gaged in  the  business  of  insurance  as  agent  or  otherwise 
about  any  particular  rate  of  premium  which  should  be 
charged  or  fixed  for  any  kind  or  class  of  insurance  risk ; 
And  provided  further,  no  stipulation  or  agreement  in 
such  contract  or  policy  of  insurance  to  arbitrate  loss  or 
damage  nor  to  give  notice  or  make  proofs  of  loss  or  dam- 
age shall  in  any  such  case  be  binding  on  the  assured  or 
beneficiary,  but  right  of  action  accrues  immediately  upon 
loss  or  damage. 

Be  it  further  enacted,  That  if  it  is  shown  to  the  reason- 
able satisfaction  of  the  jury  by  a  preponderance  of  the 
weight  of  the  testimony  that  such  assurer  at  the  time  of 
the  making  of  such  agreement  or  policy  of  insurance  or 


42  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

subsequently  before  the  time  of  trial  belonged  to,  or  was 
a  member  of,  in  any  way  connected  with  any  tariff  asso- 
ciation or  such  like  thing  by  whatever  name  called,  either 
in  or  out  of  this  state,  or  had  made  any  agreement  or  had 
any  understanding  either  in  or  out  of  this  state  with 
any  person,  corporation  or  association  engaged  in  the 
business  of  insurance  as  agent  or  otherwise  about  any 
particular  rate  of  premium  which  should  be  charged  or 
fixed  for  any  risk  of  insurance  on  any  person  or  prop- 
erty or  on  any  kind  or  class  of  insurance  risk,  they  must 
if  they  find  for  the  assured  or  beneficiary  in  addition  to 
his  actual  damages  assess  and  add  twenty-five  per  cent 
of  the  amount  of  such  actual  loss,  and  judgment  shall  be 
rendered  accordingly. 

Be  it  further  enacted,  That  this  act  shall  be  liberally 
construed  to  accomplish  its  object. 

February  18th,  1897. 

COURT  DECISIONS. 

Citizens'  Light,  Heat  &  Power  Co.  v.  Montgomery 
Light  &  Water  Power  Co.,  171  Fed.,  553. 


ARIZONA. 

CONSTITUTION,    1910. 

SEC.  4.  No  corporation  shall  engage  in  any  business 
other  than  that  expressly  authorized  in  its  charter  or  by 
the  law  under  which  it  may  have  been  or  ma}7  hereafter 
be  organized. 

SEC.  5.  Xo  corporation  organized  outside  of  the  limits 
of  this  State  shall  be  allowed  to  transact  business  within 
this  State  on  more  favorable  conditions  than  are  pre- 
scribed by  law  for  similar  corporations  organized  under- 
the  laws  of  this  State;  and  no  foreign  corporation  shall 
be  permitted  to  transact  business  within  this  State  unless 
said  foreign  corporation  is  by  the  laws  of  the  country. 
State,  or  Territory  under  which  it  is  formed  permitted 
to  transact  a  like  business  in  such  country,  State,  or 
Territory. 

STATUTES. 

AN  ACT  Defining  and  prohibiting  trusts,  providing  procedure  to 
enforce  the  provisions  of  this  act,  and  providing  penalties  for 
violation  of  the  provisions  of  this  act. 

(Law  1912,  c.  73.) 

SEC.  1.  A  trust  is  a  combination  of  capital,  skill,  or 
acts,  by  two  or  more  persons,  firms,  corporations,  or  asso- 
ciations of  persons,  or  either  two  or  more  of  them,  for 
either,  any  or  all  of  the  following  purposes : 

First. — To  create  or  carry  out  restrictions  in  trade  or 
commerce  or  aids  to  commerce,  or  to  carry  out  restric- 
tions in  the  full  and  free  pursuit  of  any  business  author- 
ized or  permitted  by  the  laws  of  this  State. 

Second. — To  increase  or  reduce  the  price  of  merchan- 
dise (merchandise),  products  or  commodities,  or  limit 
the  production  thereof,  or  to  control  the  cost  or  rates  of 
insurance. 

Third. — To  prevent  competition  in  the  manufacture, 
making,  transportation,  sale  or  purchase  of  merchandise, 
products  or  commodities,  or  to  prevent  competition  in 
aids  to  commerce. 

43 


44  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

Fourth. — To  fix  any  standard  or  figure,  whereby  its 
price  to  the  public  shall  be,  in  any  manner,  controlled 
or  established,  any  article  or  commodity  of  merchandise, 
product  or  commerce  intended  for  sale,  use  or  consump- 
tion in  this  State. 

Fifth. — To  make  or  enter  into,  or  execute  or  carry  out, 
any  contract,  obligation  or  agreement  of  any  kind  or 
description  by  which  they  shall  bind  or  have  to  bind 
themselves  not  to  sell,  manufacture,  dispose  of  or  trans- 
port any  article  or  commodity,  or  article  of  trade,  use, 
merchandise,  commerce  or  consumption  below  a  common 
standard  figure  or  by  which  they  shall  agree  in  any  man- 
ner to  keep  the  price  of  such  article,  commodity  or  trans- 
portation at  a  fixed  or  graded  figure,  by  which  they  shall 
in  any  manner  establish  or  settle  the  price  of  any  article 
or  commodity  or  transportation  between  them  or  them- 
selves and  others,  to  preclude  a  free  and  unrestricted  com- 
petition among  themselves  or  others  in  transportation, 
sale  or  manufacture  of  any  such  article  or  commodity, 
or  by  which  they  shall  agree  to  pool,  combine  or  unite  any 
interest  they  may  have  in  connection  with  the  manufac- 
ture, sale,  or  transportation  of  any  such  article  or  com- 
modity, that  its  price  may  in  any  manner  be  affected. 

Sixth. — To  regulate  the  transportation  of  any  product 
or  commodity. 

And  any  such  combinations  are  hereby  declared  to  be 
against  public  policy,  unlawful  and  void. 

SEC.  2.  All  persons,  companies,  or  corporations  within 
this  State  are  hereby  denied  the  rights  to  form  or  to  be 
in  any  manner  interested,  either  directly  or  indirectly, 
as  principal,  agent,  representative,  consignee  or  other- 
wise in  any  trust  as  defined  in  Sec.  1  of  this  Act. 

SEC.  3.  Any  corporation,  holding  a  charter  under  the 
laws  of  the  State  of  Arizona  which  shall  violate  any  of 
the  provisions  of  this  Act  shall  thereby  forfeit  its  charter 
and  franchise,  and  its  corporate  existence  shall  cease  and 
determine;  and  any  stockholder,  director,  officer,  agent, 
representative  or  consignee  of  any  such  corporation  shall 
be  subject  to  the  penalties  herein  prescribed. 

SEC.  4.  For  a  violation  of  any  provision  of  this  Act 
by  any  corporation,  or  any  of  its  officers  or  agents,  men- 
tioned herein,  it  shall  be  the  duty  of  the  Attorney  General 
of  the  State  or  County  Attorney  of  any  county  in  which 
said  violation  may  occur,  or  either  of  them,  upon  his  own 


ARIZONA.  45 

motion,  to  institute  an  action  in  any  court  in  this  State 
having  jurisdiction  thereof,  for  the  forfeiture  of  the 
charter,  rights  and  franchise  of  such  corporation,  and 
the  dissolution  of  its  corporate  existence. 

SEC.  5.  Every  person,  company,  or  corporation  within 
or  without  this  State,  their  officers,  agents,  representa- 
tives, or  consignees,  violating  any  of  the  provisions  of 
this -Act,  within  this  State,  are  hereby  denied  the  right, 
and  are  hereby  prohibited  from  doing  any  business 
within  this  State,  and  all  persons,  companies  and  cor- 
porations, their  officers,  agents,  representatives  and  con- 
signees within  this  State  are  hereby  denied  the  right  to 
handle  the  goods  of,  or  in  any  manner  deal  with,  directly 
or  indirectly,  any  such  person,  company,  or  corporation, 
their  officers,  agents,  representatives,  or  consignees,  and 
it  shall  be  the  duty  of  the  Attorney  General,  and  the 
County  Attorney  of  any  county  in  the  State  where  any 
violation  of  this  Act  be  committed,  or  either  of  them,  to 
enforce  the  provisions  of  this  section  by  injunction  or 
other  proceeding;  and  all  persons,  companies  and  cor- 
porations, their  officers,  agents,  representatives  or  con- 
signees, violating  any  of  the  provisions  of  this  section, 
either  directly  or  indirectly  or  abetting  or  aiding  either 
directly  or  indirectly  in  any  violation  of  any  provisions 
of  this  section,  shall  be  deemed  guilty  of  a  misdemeanor 
and  shall  be  fined  not  less  than  One  Hundred  Dollars 
($100.00)  nor  more  than  One  Thousand  Dollars 
($1,000.00),  and  confined  in  jail  not  less  than  Thirty 
(30)  Days,  nor  more  than  six  (6)  Months,  and  shall  for- 
feit not '  less  than  One  Hundred  Dollars  ($100.00)  for 
each  and  every  day  such  violation  may  continue,  which 
may  be  recovered  in  the  name  of  the  State  of  Arizona  in 
any  court  of  competent  jurisdiction. 

SEC.  6.  Each  and  every  person,  company  or  corpora- 
tion, their  officers,  agents,  representatives  or  consignee;-:, 
who  either  directly  or  indirectly,  violate  any  of  the  pro- 
visions of  this  Act  shall  be  deemed  guilty  of  a  misde- 
meanor and  on  conviction  thereof  shall  be  subject  to  a 
fine  of  not  less  than  One  Hundred  Dollars  ($100.00)  nor 
more  than  One  Thousand  ($1,000.00),  and  shall  be 
imprisoned  not  less  than  Thirty  (30)  Days  nor  more 
than  Six  (6)  Months,  and  in  addition  thereto  for  each 
and  every  day  thereafter  that  such  violation  shall  be  com- 
mitted or  continued,  forfeit  and  pay  the  sum  of  One 


46  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

Hundred  Dollars  ($100.00),  which  may  be  recovered  in 
the  name  of  the  State  of  Arizona,  in  any  county  where 
the  offense  is  committed  or  where  either  of  the  offenders 
reside,  and  it  shall  be  the  duty  of  the  Attorney  General 
of  the  State  or  of  the  County  Attorney  of  any  county  in 
the  State,  in  which  said  violation  shall  occur,  or  either 
of  them,  to  prosecute  and  enforce  the  provisions  of  this 
Act. 

SEC.  7.  The  creation  or  maintenance  of  a  monopoly 
within  the  State  shall  be  unlawful,  and  any  person,  part- 
nership, association,  company,  or  corporation  attempting 
to  create  or  maintain  such  monopoly  shall  be  punished, 
as  provided  for  persons,  companies,  or  corporations,  their 
officers,  agents,  representatives,  or  assigns  forming  or 
interested  in  trusts,  as  defined  herein,  as  provided  in  Sec. 
6  hereof,  and  to  all  other  penalties  provided  herein  for 
violation  of  the  provisions  of  this  Act. 

SEC.  8.  Any  contract  or  agreement  in  violation  of  any 
of  the  provisions  of  this  Act  shall  be  absolutely  void  and 
not  enforceable  in  any  of  the  courts  of  this  State,  and 
when  any  civil  action  relating  to  and  growing  out  of  trans- 
actions prohibited  by  this  Act,  shall  be  commenced  in 
any  court  of  this  State,  it  shall  be  lawful  to  plead  in  the 
defense  thereof  that  the  plaintiff  or  any  other  person 
interested  in  the  prosecution  of  the  case  is,  at  the  time, 
or  has  within  One  (1)  Year  next  preceding  the  date  of 
the  commencement  of  any  such  action,  been  guilty  either 
as  principal,  agent,  representative,  or  consignee,  directly 
or  indirectly,  of  a  violation  of  any  of  the  provisions  of 
this  Act,  or  that  the  cause  of  action  grows  out  of  any 
business  transaction  in  violation  of  this  Act. 

SEC.  9.  That  any  person,  firm,  company,  or  corpora- 
tion that  may  be  damaged  by  any  such  agreement,  trusts 
or  combination  described  in  Sees.  1  and  2  of  this  Act, 
may  sue  for  and  recover  in  any  court  of  competent  juris- 
diction in  this  State,  of  any  person,  company,  or  corpora- 
tion, operating  such  trust  or  combination,  such  dam- 
ages as  they  have  sustained,  together  with  a  reasonable 
attorney  fee. 

SEC.  10.  It  shall  be  the  duty  of  the  Attorney  General 
of  the  State,  an-d  the  County  Attorneys  in  their  respec- 
tive counties,  to  diligently  prosecute  any  and  all  persons 
violating  any  of  the  provisions  of  this  Act,  and  it  shall 
be  the  duty  of  all  State  and  county  officials  having  no- 


AEIZOSTA.  47 

tice  and  knowledge  of  any  violation  of  the  provisions  of 
this  Act  to  notify  the  county  attorney  of  their  respective 
counties  and  the  Attorney  General  of  the  State,  of  the 
fact  of  such  violation,  and  to  furnish  them  with  the 
names  of  any  witnesses  by  whom  such  violation  can  be 
proved;  if  any  such  officer  or  officers  shall  fail  to  com- 
ply with  the  provisions  of  this  section  he  shall,  upon  con- 
viction, be  fined  in  any  sum  not  less  than  One  Hundred 
Dollars  ($100.00)  nor  more  than  One  Thousand  Dollars 
($1,000.00),  and  such  conviction  shall  be  a  forfeiture  of 
the  office  held  by  such  person,  and  the  court  before  whom 
such  conviction  is  had  shall,  in  addition  to  the  imposition 
of  the  fine  aforesaid,  order  and  adjudge  the  forfeiture 
of  his  said  office. 

SEC.  11.  The  several  superior  courts  of  this  State,  and 
the  judges  thereof,  shall  have  jurisdiction,  and  it  shall 
be  their  duty,  upon  good  cause  shown  and  upon  written 
application  of  the  County  Attorney  or  the  Attorney  Gen- 
eral, to  cause  to  be  issued  by  the  clerk  of  said  court  sub- 
poenas for  such  witnesses  as  may  be  named  in  the  ap- 
plication of  a  county  attorney  or  the  Attorney  General, 
and  to  cause  the  same  to  be  served  by  the  sheriff  of  the 
county  where  such  subpoena  is  issued;  and  such  wit- 
nesses shall  be  compelled  to  appear  before  such  court  or 
judge,  at  the  time  and  place  set  forth  in  the  subpoena, 
and  shall  be  compelled  to  testify  as  to  any  knowledge 
they  may  have  of  the  violation  of  any  of  the  provisions 
of  this  Act:  and  any  witness  who  fails  or  refuses  to 
attend  and  testify  shall  be  punished  as  for  contempt  as 
provided  by  law.  Any  person  subpoenaed  and  examined 
shall  not  be  liable  to  criminal  prosecution  for  any  viola- 
tion of  this  Act  about  which  he  may  testify.  Neither 
shall  the  evidence  of  any  such  witness  be  used  against 
him  in  any  criminal  proceeding.  The  evidence  of  all  wit- 
nesses so  subpoenaed  shall  then  be  taken  down  by  the 
reporter  of  said  court  and  shall  be  transcribed  and  placed 
in  the  hands  of  the  County  Attorney  or  the  Attorney 
General,  and  he  shall,  in  the  proper  courts,  at  once  prose- 
cute such  violator  or  violators  of  this  Act  as  the  testi- 
mony so  taken  shall  disclose.  Witnesses  subpoenaed  as 
provided  for  in  this  section  shall  be  compelled  to  attend 
from  any  county  in  the  State. 


ARKANSAS. 

CONSTITUTION,   1874. 

ART.  11,  SEC.  19.  Perpetuities  and  monopolies  are  con- 
trary to  the  genius  of  a  republic,  and  shall  not  be  al- 
lowed; *  *  * 

STATUTES   (ACT  1905  AS  AMENDED  MAR.   12,  1913). 

Any  corporation  organized  under  the  laws  of  this  or 
any  other  state,  or  country,  and  transacting  or  conducting 
any  kind  of  business  in  this  state,  or  any  partnership  or 
individual,  or  other  association  or  persons  whatsoever, 
who  are  now,  or  shall  hereafter  create,  enter  into,  become 
a  member  of,  or  a  party  to,  any  pool,  trust,  agreement, 
combination,  confederation  or  understanding,  whether 
the  same  is  made  in  this  state  or  elsewhere,  with  any  other 
corporation,  partnership,  individual,  or  any  other  person 
or  association  of  persons,  to  regulate  or  fix  either  in  this 
state  or  elsewhere  the  price  of  any  article  of  manufacture, 
mechanism,  merchandise,  commodity,  convenience,  repair, 
any  product  of  mining,  or  any  article  or  thing  whatso- 
ever, or  the  price  or  premium  to  be  paid  for  insuring 
property  against  loss  or  damage  by  fire,  lightning  or  tor- 
nado, or  to  maintain  said  price  when  so  regulated  or  fixed, 
or  who  are  now,  or  shall  hereafter  enter  into,  become  a 
member  of.  or  a  party  to,  any  pool,  agreement,  contract, 
combination,  association  or  confederation,  whether  made 
in  this  state  or  elsewhere,  to  fix  or  limit  in  this  state  or 
elsewhere,  the  amount  of  quantity  of  any  article  of  manu- 
facture, mechanism,  merchandise,  commodity,  conven- 
ience, repair,  any  product  of  mining,  or  any  article  or 
thing  whatsoever,  or  the  price  or  premium  to  be  paid  for 
insuring  property  against  loss  or  damage  by  fire,  light- 
ning, storm,  cyclone,  tornado  or  any  other  kind  of  polkrp 
issued  by  any  corporation,  partnership,  individual  or 
association  of  persons  aforesaid,  shall  be  deemed  and  ad- 
judged guilt}'  of  a  conspiracy  to  defraud  and  be  subject 
to  the  penalties  as  provided  by  this  act. 

16491—13 4  49 


50  LAWS    ON    TEUSTS   AND   MONOPOLIES. 

SEC.  2.  Any  person,  partnership,  firm  or  association. 
or  any  representative  or  agent  thereof,  or  any  corpora- 
tion or  company,  or  any  officer,  representative  or  agent 
thereof,  violating  any  of  the  provisions  of  this  Act,  shall 
forfeit  not  less  than  two  hundred  dollars,  nor  more  than 
five  thousand  dollars  for  every  such  offense,  and  each  day 
such  person,  corporation,  partnership  or  association  shall 
continue  to  do  so  shall  be  a  separate  offense,  the  penalty 
in  such  case  to  be  recovered  by  an  action  in  the  name  of 
the  State  at  the  relation  of  the  Attorney  General,  the 
moneys  thus  collected  to  go  into  the  State  Treasury  for 
the  benefit  of  the  common  school  fund  of  this  State, 
except  as  hereinafter  provided.  (Act  Mar.  12,  1913.) 

SEC.  3.  Any  corporation  created  or  organized  by  or  un- 
der the  laws  of  this  state  which  shall  violate  any  of  the 
provisions  of  the  preceding  sections  of  this  act  shall 
thereby  forfeit  its  corporate  rights  and  franchises  and  its 
corporate  existence  shall,  upon  proper  proof  being  made 
thereof  in  any  court  of  competent  jurisdiction  in  this 
state,  be  by  the  court  declared  forfeited,  void  and  of  non- 
effect,  and  shall  thereupon  cease  and  determine;  and  any 
corporation  created  or  organized  by  or  under  the  laws  of 
any  other  state  or  country,  which  shall  violate  any  provi- 
sions of  the  preceding  sections  of  this  act,  shall  thereby 
forfeit  its  right  and  privilege  thereafter  to  do  any  busi- 
ness in  this  state,  and  upon  proper  proof  being  made 
thereof  in  any  court  of  competent  jurisdiction  in  this 
state,  its  right  and  privilege  to  do  business  in  this  state 
shall  be  declared  forfeited ;  and  in  all  proceedings  to  have 
such  forfeiture  declared,  proof  that  any  person  who  has 
been  acting  as  the  agent  of  such  foreign  corporation  in 
transacting  business  in  this  state,  has  been,  while  acting 
as  such  agent,  and  in  the  name,  behalf  or  interest  of  such 
foreign  corporation,  violating  any  provisions  of  the  pre- 
ceding sections  of  this  act,  shall  be  received  as  prima 
facie  proof  of  the  act  of  the  corporation  itself;  and  it 
shall  be  the  duty  of  the  clerk  of  said  court  to  certify  the 
decree  thereof  to  the  secretary  of  state,  and  if  it  be  an 
insurance  company,  also  to  the  auditor  of  the  state,  who 
shall  take  notice  and  be  governed  thereby  as  to  the  cor- 
porate powers  and  rights  of  said  corporation. 

SEC.  4.  Xo  individual,  company  or  corporation  shall 
be  subject  to  any  of  the  penalties  of  this  Act.  unless  such 
individual,  company  or  corporation  shall  do  within  this 


ARKANSAS.  51 

State  some  act  directly  tending  to  carry  into  effect  a 
conspiracy  prohibited  by  this  Act;  and  the  purchase, 
sale,  delivery  or  disposition  of  any  article  of  commerce 
in  a  lawful  manner  within  this  State  shall  not  be  deemed 
an  act  done  in  pursuance  of,  or  for  the  purpose  of  carry- 
ing into  effect  any  such  conspiracy.  (Act  Mar.  12,  1913.) 
SEC.  5.  A  monopoly  is  any  union  or  combination  or  con- 
solidation or  affiliation  of  capital,  Credit,  property,  assets, 
trade,  customs,  skill  or  acts  of  any  other  valuable  thing  or 
possession,  by  or  between  persons,  firms  or  corpora- 
tions, or  association  of  persons,  firms  or  corporations, 
whereby  any  one  of  the  purposes  or  objects  mentioned  in 
this  act  is  accomplished  or  sought  to  be  accomplished,  or 
whereby  any  one  or  more  of  said  purposes  are  promoted 
or  attempted  to  be  executed  or  carried  out,  or  whereby  the 
several  results  described  herein  are  reasonably  calculated 
to  be  produced ;  and  a  monopoly  as  thus  defined  and  con- 
templated, includes  not  merely  such  combination  by  and 
between  two  or  more  persons,  firms  and  corporations,  act- 
ing for  themselves,  but  is  especially  defined  and  intended 
to  include  all  aggregations,  amalgamations,  affiliations, 
consolidations  or  incorporations  of  capital,  skill,  credit, 
assets,  property,  custom,  trade  or  other  valuable  thing  on, 
possession  whether  effected  by  the  ordinary  methods  of 
partnership  or  by  actual  union  under  the  legal  form  of  a 
corporation,  or  any  incorporated  body  resulting  from  the 
union  of  one  or  more  distinct  firms  or  corporations,  or  by 
the  purchase,  acquisition  or  control  of  shares  or  certifi- 
cates of  stocks  or  bonds,  or  other  corporate  property  or 
franchises,  and  all  partnerships  and  corporations  that 
have  been  or  may  be,  created  by  the  consolidation  or  amal- 
gamation of  the  separate  capital,  stock,  bonds,  assets, 
credit,  property,  customs,  trade,  corporate  or  firm  belong- 
ings of  two  or  more  firms  or  corporations  or  companies, 
are  especially  declared  to  constitute  monopolies  within 
the  meaning  of  this  act,  if  so  created  or  entered  into  for 
any  one  or  more  of  the  purposes  named  in  this  act ;  and  a 
monopoly,  as  thus  defined  in  this  section,  is  hereby  de- 
clared to  be  unlawful  and  against  public  policy,  and  any 
and  all  persons,  firms,  corporations  or  association  of  per- 
sons engaged  therein  shall  be  deemed  and  adjudged  to  be 
guilty  of  a  conspiracy  to  defraud,  and  shall  be  subject  to 
the  penalties  prescribed  in  this  act. 


52  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

SEC.  6.  If  any  person,  persons,  company,  partnership, 
association,  corporation  or  agent  engaged  in  the  manufac- 
ture or  sale  of  any  article  of  commerce  or  consumption  pro- 
duced, manufactured  or  mined  in  this  state,  or  elsewhere, 
shall,  with  the  intent  and  purpose  of  driving  out  compe- 
tition, or  for  the  purpose  of  financially  injuring  compet- 
itors, sell  within  this  state  at  less  than  cost  of  manufac- 
ture or  production,  or'sell  in  such  a  way,  or  give  away  in 
this  state,  their  productions  for  the  purpose  of  driving 
out  competition,  or  financially  injuring  competitors  en- 
gaged in  similar  business,  said  person,  or  persons,  com- 
pany, partnership,  association,  corporation,  or  agent  re- 
sorting to  this  method  of  securing  a  monopoly  within  this 
state  in  such  business,  shall  be  deemed  guilty  of  a  con- 
spiracy to  form  and  secure  a  trust  or  monopoly  in  re- 
straint of  trade,  and  on  conviction  thereof  shall  be  sub- 
jected to  the  penalties  of  this  act. 

SEC.  7.  It  shall  be  the  duty  of  the  Secretar\^  of  State 
on  or  about  the  first  day  of  July  each  year,  to  address  to 
the  president,  secretary  or  treasurer,  or  any  director  of 
said  company  doing  business  in  this  State,  a  letter  of 
inquiry  as  to  whether  the  said  corporation  has  all  or  any 
part  of  its  interest  or  business  in  or  with  any  trust,  com- 
bine or  association  or  persons  or  stockholders  as  named 
in  the  preceding  provisions  of  this  Act,  and  to  require 
an  answer  under  oath,  of  the  president,  secretary  or  treas- 
urer, or  any  director  of  said  company.  A  form  of  affi- 
davit shall  be  inclosed  in  said  letter  of  inquiry,  as 
f  ollows : 

AFFIDAVIT. 

State  of  Arkansas,  County  of 

I, do  solemnly  swear  that  I  am  the 

(president,  secretary,  treasurer  or  di- 
rector) of  the  corporation  known  and  styled 

duly  incorporated  under  the  la  AYS  of 

on  the day  of 

and   now   transacting   or    conducting 

business  in  the  State  of  Arkansas,  and  that  I  am  duly 
authorized  to  represent  said  corporation  in  making  this 
affidavit ;  and  I  do  further  solemnly  swear  that  said 

,  known  and  styled  as  aforesaid,  has  not,  since 

the day  of (naming  the  day  upon 

which  this  Act  is  to  take  effect),  created,  entered  into  or 


AEKANSAS.  53 

become  a  member  of  or  a  party  to,  and  was  not  on  the 

day  of nor  at  any  day  since  that 

date,  and  is  not  now  a  member  of  or  a  party  to  any  pool, 
trust,  agreement,  combination,  confederation  or  under- 
standing with  any  other  corporation,  partnership,  indi- 
vidual or  any  other  person  or  association  or  persons, 
either  in  this  State  or  elsewhere,  to  regulate  or  fix  in  this 
State  the  price  of  any  article  of  manufacture,  mechanism, 
merchandise,  commodity,  convenience,  repair  any  product 
of  mining,  or  any  article  or  thing  whatsoever,  or  the 
price  or  premium  to  be  paid  for  insuring  property  against 
loss  or  damage  by  fire,  lightning,  storm,  cyclone,  tornado, 
or  any  other  kind  of  policy  issued  by  the  parties  afore- 
said ;  and  that  it  has  not  entered  into  or  become  a  mem- 
ber of  or  a  party  to  any  pool,  trust,  agreement,  contract, 
combination,  or  confederation,  to  fix  or  limit  in  this 
State  the  amount  or  quantity  of  any  article  of  manufac- 
ture, mechanism,  merchandise,  commodity,  convenience, 
repair,  any  product  of  mining,  or  any  article  or  thing- 
whatsoever,  or  the  price  or  premium  to  be  paid  for  in- 
suring property  against  loss  or  damage  by  fire,  lightning, 
storm,  cyclone,  tornado,  or  any  other  kind  of  policy 
issued  by  the  parties  aforesaid;  and  that  it  has  not  issued 
and  does  not  own  any  trust  certificates  for  any  corpo- 
ration, agent,  officer  or  employee,  or  for  the  directors 
or  stockholders  of  any  corporation,  and  has  not  en- 
tered into  and  is  not  now  in  any  combination,  contract 
or  agreement  with  any  person,  or  persons,  corporation  or 
corporations,  or  with  any  stockholder  or  director  thereof, 
the  purpose  and  effect  of  which  said  combination,  con- 
tract or  agreement  would  be  to  place  the  management  or 
control  of  such  combination  or  combinations,  or  the 
manufactured  products  thereof  in  the  hands  of  any 
trustee  or  trustees,  with  the  intent  to  fix  or  limit  the 
price  or  lessen  the  production  and  sale  of  any  article  of 
commerce,  use  or  consumption,  or  to  prevent,  restrict  or 
diminish  the  manufacture  or  output  of  any  article  in 
Arkansas. 


President,  Secretary,  Treasurer,  or  Director. 


"  Subscribed  and  sworn  to  before  me,  a 

within  and  for  the  County  of this 

day  of 1 

Seal. 


54  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

"And  on  refusal  to  make  oath  in  ansAver  to  said  in- 
quiry, or  on  failure  to  do  so,  within  thirty  days  from  the 
mailing  thereof,  the  Secretary  of  State  shall  certify  said 
fact  to  the  Attorney  General,  and  it  shall  be  the  duty  of 
the  Attorney  General,  at  his  earliest  practical  moment. 
in  the  name  of  the  State  and  at  the  relation  of  the  At- 
torney General,  to  proceed  against  said  corporation,  if  a 
domestic  corporation,  for  the  recovery  of  the  money  for- 
feit provided  for  in  this  Act,  and  also  for  the  forfeiture 
of  its  charter  or  certificate  of  incorporation.  If  a  for- 
eign corporation,  to  proceed  against  such  corporation 
for  the  recovery  of  the  money  forfeit  provided  for  in  this 
Act,  and  to  forfeit  its  right  to  do  business  in  this  State. 
Provided,  that  within  sixty  days  after  the  passage  of 
this  Act,  all  foreign  corporations  desiring  to  do  business 
in  this  State  shall  file  a  new  bond,  as  the  statutes  direct ; 
and  such  sureties  and  bondsmen  shall  be  liable  for  the 
penalties  and  forfeitures,  including  costs,  provided  for 
in  this  Act.  (Act  Mar.  12,  1913.) 

SEC.  8.  Whenever  any  proceedings  shall  be  commenced 
in  any  court  of  competent  jurisdiction  in  this  State  by 
the  Attorney  General  against  any  corporation  or  cor- 
porations, individual  or  individuals,  or  association  of  in- 
dividuals, or  joint  stock  association  or  co-partnership 
under  the  law  against  the  formation  and  maintenance  of 
pools,  trusts  of  any  kind,  monopolies  or  confederations, 
combinations  or  organizations  in  restraint  of  trade,  to 
dissolve  the  same  or  to  restrain  their  formation  or  main- 
tenance in  this  State,  or  to  recover  the  penalties  in  this 
Act  provided,  then,  and  in  such  case,  if  the  Attorney 
General  desire  to  take  the  testimony  of  any  officer, 
director,  agent  or  employee  of  any  incorporation,  or 
joint  stock  association  proceeded  against,  or  in  case  of  a 
co-partnership  any  of  the  members  of  said  partnership, 
or  any  employee  thereof,  in  any  court  in  which  said  ac- 
tion may  be  pending;  and  the  individual  or  individuals 
whose  testimony  is  desired  are  without  the  jurisdiction 
of  this,  or  reside  without  the  State  of  Arkansas,  then  in 
such  case  the  Attorney  General  may  file  in  said  court  in 
term  time,  or  with  the  judge  thereof  in  vacation,  a  state- 
ment, in  writing  setting  forth  the  name  or  names  of  the 
persons  or  individuals  whose  testimony  he  desires  to 
take,  and  the  time  when  and  the  place  where  he  desires 
said  person  to  appear;  and  thereupon  the  court  or  judge 
thereof  shall  make  an  order  for  the  taking  of  said  testi- 


ARKANSAS.  55 

monv  of  such  person  or  persons,  arid  for  the  production 
of  any  books,  papers,  documents  in  his  possession  or 
under  his  control  relating  to  the  merits  of  any  suit,  or 
to  any  evidence  therein,  shall  appoint  a  commission  for 
that  purpose,  who  shall  be  an  officer  authorized  by  law  to 
take  depositions  in  this  State,  and  said  Commission  shall 
issue  immediately  a  notice  in  writing,  directed  to  the 
attorney  or  attorneys  of  record  in  said  cause,  or  agent, 
or  officer,  or  other  employee,  that  the  testimony  of  the 
person  named  in  the  application  of  the  Attorney  General 
is  desired,  and  requesting  said  attorney  or  attorneys  of 
record,  of  said  officer,  agent  or  employee  to  whom  said 
notice  is  delivered,  and  upon  whom  the  same  is  served, 
to  have  said  officer,  agent,  employee,  representative  of 
said  co-partnership,  or  agent  thereof,  whose  evidence  is 
desired  to  take,  together  with  such  books,  papers  and 
documents,  at  the  place  named  in  the  application,  shall 
then  and  there  testify.  Provided,  however,  that  such  ap- 
plication shall  always  allow  in  fixing  said  time  and  same 
number  of  days'  travel  to  reach  the  designated  place  in 
Arkansas  that  would  be  allowed  by  law  in  case  of  taking 
depositions;  provided,  also  in  addition  to  the  above 
named  time,  six  days  shall  be  allowed  for  the  attorneys 
of  record,  or  the  agent,  officer  or  employee  on  whom 
notice  is  served  to  notify  the  person  or  persons  whose 
testimony  is  to  be  taken.  Service  of  said  notice  as  re- 
turned in  writing  may  be  made  by  any  one  authorized  by 
law  to  serve  subpoena.  (Act  Mar.  12,  1913.) 

SEC.  9.  Whenever  the  persons  mentioned  in  the  pre- 
ceding sections  shall  be  notified  as  above  provided,  to 
request  any  officer,  agent,  director  or  employee  to  attend 
before  any  court,  or  before  any  person  authorized  to 
take  the  testimony  in  said  proceedings,  and  the  person 
or  persons  whose  testimony  is  required  as  above  provided, 
shall  fail  to  appear  and  testify  and  produce  any  books, 
papers  and  documents,  they  may  be  ordered  to  procure 
by  court,  or  the  other  office  authorized  to  take  such  evi- 
dence, then  it  will  be  the  duty  of  the  court,  upon  motion 
of  the  Attorney  General,  to  strike  out  the  answer,  mo- 
tion, reply,  demurrer  or  other  pleading  then  or  thereafter 
filed  in  said  action  or  proceeding  by  the  said  corporation, 
joint  stock  association  or  co-partnership  whose  officer, 
agent,  director  or  employee  has  neglected  or  failed  to 
attend  and  testify  and  produce  all  books,  papers  and 
documents  he  or  they  shall  have  been  ordered  to  produce 


56  LAWS   ON    TEUSTS   AND   MONOPOLIES. 

in  said  action  by  the  court  or  person  authorized  to  take 
said  testimony  and  said  court  shall  proceed  to  render 
judgment  by  default  against  said  co-partnership,  joint 
stock  association  or  corporation,  joint  stock  association 
or  co-partnership.  And  it  is  further  provided,  that  in 
case  of  any  officer,  agent,  employee,  director  or  represent- 
ative of  any  corporation,  joint  stock  association  or  co- 
partnership in  such  proceeding,  as  hereinbefore  men- 
tioned, who  shall  reside  or  be  found  within  this  State, 
shall  be  subpoenaed  to  appear  and  testify,  or  produce 
books,  papers  and  documents  and  shall  fail,  neglect  or 
refuse  to  do  so,  then  the  answer,  motion,  demurrer  or 
other  pleading  then  and  thereafter  filed  by  said  corpora- 
tion, joint  stock  association  or  co-partnership  in  any 
such  proceeding,  shall  on  motion  of  the  Attorney  Gen- 
eral, be  stricken  out  and  judgment  in  said  cause  rendered 
against  said  corporation,  joint  stock  association  or  co- 
partnership. (Act  Mar.  12,  1913.) 

SEC.  10.  It  will  be  the  duty  of  the  Attorney  General 
to  enforce  the  provisions  of  this  Act.  As  compensation 
for  his  services  in  this  behalf,  the  Attorney  General  shall 
be  entitled  to  his  actual  expenses  incurred  in  the  prose- 
cution of  such  suits,  to  be  paid  by  the  defendant  or  de- 
fendants when  judgment  is  rendered  for  the  State,  to  be 
taxed  as  costs  by  the  court  hearing  the  cause.  (Act  Mar. 
12,  1913.) 

SEC.  11.  In  all  suits  instituted  under  this  Act  to  for- 
feit the  charter  of  corporations,  or  to  forfeit  the  right  of 
a  corporation  to  do  business  in  this  State,  where  judg- 
ment of  forfeiture  is  obtained,  and  the  cause  not  appealed 
to  the  Supreme  Court,  the  Circuit  Court  rendering  such 
judgment  shall  allow  the  Attorney  General,  his  actual 
expenses,  to  be  paid  out  of  the  assets  of  said  corporation. 
All  actions  authorized  and  brought  under  this  Act  shall 
have  precedence  on  motion  of  the  Attorney  General,  of 
all  other  business,  civil  and  criminal,  except  criminal 
cases  where  the  defendants  are  in  jail.  (Act  Mar.  12. 
1913.) 

COURT  DECISIONS. 

Hammond  Packipg  Co.  v.  State,  212  U.  S.,  322. 
State  v.  Lancashire  Ins.  Co.,  66  Ark.,  466 ;  45  L.  E.  A., 
348. 

State  v.  Aetna  Fire  Ins.  Co.,  66  Ark.,  480. 
Ex  Parte  Levy,  43  Ark.,  42,  53. 


CALIFORNIA. 

CONSTITUTION,    1879. 

ART.  12,  SEC.  9.  No  corporation  shall  engage  in  any 
business  other  than  that  expressly  authorized  in  its  char- 
ter, or  the  law  under  which  it  may  have  been  or  may 
hereafter  be  organized;  nor  shall  it  hold  for  a  longer 
period  than  five  years  any  real  estate  except  such  a.s  may 
be  necessary  for  carrying  on  its  business. 

STATUTES. 
[March  23.  1907.] 

CARTWRIGHT  ANTI-TRUST  LAW. 

SECTION  1.  A  trust  is  a  combination  of  capital,  skill  or 
acts  by  two  or  more  persons,  firms,  partnerships,  corpo- 
rations or  associations  of  persons,  or  of  any  two  or  more 
of  them  for  either,  any  or  all  of  the  following  purposes : 

1.  To  create  or  carry  out  restrictions  in  trade  or  com- 
merce. 

2.  To  limit  or  reduce  the  production,  or  increase  the 
price  of  merchandise  or  of  any  commodity. 

3.  To  prevent  competition  in  manufacturing,  making, 
transportation,  sale  or  purchase  of  merchandise,  produce 
or  any  commodity. 

4.  To  fix  at  any  standard  or  figure,  whereby  its  price 
to  the  public  or  consumer  shall  be  in  any  manner  con- 
trolled or  established,  any  article  or  commodity  of  mer- 
chandise, produce  or  commerce  intended  for  sale,  barter, 
use  or  consumption  in  this  state. 

5.  To  make  or  enter  into  or  execute  or  carry  out  any 
contracts,  obligations  or  agreements  of  any  kind  or  de- 
scription, by  which  they  shall  bind,  or  have  bound  them- 
selves not  to  sell,  dispose  of  or  transport  any  article  or 
any  commodity  or  any  article  of  trade,  use,  merchandise, 
commerce  or  consumption  below  a  common  standard  fig- 

57 


58  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

are  or  fixed  value,  or  by  which  they  shall  agree  in  any 
manner  to  keep  the  price  of  such  article,  commodity  or 
transportation  at  a  fixed  or  graduated  figure,  or  by 
which  they  shall  in  any  manner  establish  or  settle  the 
price  of  any  article,  commodity  or  transportation  be- 
tween them  or  themselves  and  others,  so  as  to  directly 
or  indirectly  preclude  a  free  and  unrestricted  competition 
among  themselves,  or  any  purchasers  or  consumers  in  the 
sale  or  transportation  of  any  such  article  or  commodity, 
or  by  which  they  shall  agree  to  pool,  combine  or  directly 
or  indirectly  unite  any  interests  that  they  may  have  con- 
nected with  the  sale  or  transportation  of  any  such  article 
or  commodity,  that  its  price  might  in  any  manner  be  af- 
fected. Every  such  trust  as  is  defined  herein,  is  declared 
to  be  unlawful,  against  public  policy  and  void,  provided 
that  no  agreement,  combination  or  association  shall  be 
deemed  to  be  unlawful  or  within  the  provisions  of  this  act, 
the  object  and  business  of  which  are  to  conduct  its  opera- 
tions at  a  reasonable  profit  or  to  market  at  a  reasonable 
profit  those  products  which  cannot  otherwise  be  so  mark- 
eted, provided  further,  that  it  shall  not  be  deemed  to  be 
unlawful,  or  within  the  provisions  of  this  act,  for  persons, 
firms,  or  corporations  engaged  in  the  business  of  selling 
or  manufacturing  commodities  of  a  similar  or  like  char- 
acter, to  employ,  form,  organize  or  own  any  interest  in 
any  association,  firm  or  corporation,  having  as  its  object 
or  purpose  the  transportation,  marketing  or  delivery  of 
such  commodities.  (As  amended  by  L.  1909,  c.  362.) 

SEC.  2.  For  a  violation  of  any  of  the  provisions  of  this 
act  by  any  corporation  or  association  mentioned  herein, 
it  shall  be  the  duty  of  the  attorney-general  or  the  district 
attorney  of  the  proper  county,  to  institute  proper  suits 
or  quo  warranto  proceedings  in  any  court  of  competent 
jurisdiction  for  the  forfeiture  of  its  charter  rights,  fran- 
chises or  privileges  and  powers  exercised  by  such  cor- 
poration or  association,  and  for  the  dissolution  of  the 
same  under  the  general  statutes  of  the  state. 

SEC.  2J.  It  shall  be  lawful  to  enter  into  agreements  or 
form  associations  or  combinations,  the  purpose  and  effect 
of  which  shall  be  to  promote,  encourage  or  increase  com- 
petition in  any  .trade  or  industry,  or  which  are  in  fur- 
therance of  trade".  (Added,  L.  1909,  c.  362.) 


CALIF  OENIA.  59 

SEC.  3.  Every  foreign  corporation,  as  well  as  every  for- 
eign association,  exercising  any  of  the  powers,  franchises 
or  functions  of  a  corporation  in  this  state,  violating  any 
of  the  provisions  of  this  act,  is  hereby  denied  the  right 
and  prohibited  from  doing  any  business  in  this  state,  and 
it  shall  be  the  duty  of  the  attorney-general  to  enforce 
this  provision  by  bringing  proper  proceedings  by  injunc- 
tion or  otherwise.  The  secretary  of  state  shall  be  au- 
thorized to  revoke  the  license  of  any  such  corporation  or 
association  heretofore  authorized  by  him  to  do  business 
in  this  state. 

SEC.  4.  Any  violation  of  either  or  all  of  the  provisions 
of  this  act  shall  be  and  is  hereby  declared  a  conspiracy 
against  trade,  and  any  person  who  may  become  engaged 
in  any  such  conspiracy  or  take  part  therein,  or  aid  or 
advise  in  its  commission,  or  who  shall,  as  principal,  man- 
ager, director,  agent,  servant  or  employee,  or  in  any  other 
capacity,  knowingly  carry  out  any  of  the  stipulations, 
purposes,  prices,  rates,  or  furnish  any  information  to 
assist  in  carrying  out  such  purposes,  or  orders  there- 
under or  in  pursuance  thereof,  shall  be  punished  by  a 
fine  of  not  less  than  fifty  ($50)  dollars  nor  more  than 
five  thousand  ($5,000)  dollars,  or  be  imprisoned  not  less 
than  six  months  nor  more  than  one  year,  or  by  both  such 
fine  and  imprisonment.  Each  day's  violation  of  this  pro- 
vision shall  constitute  a  separate  offense. 

SEC.  5.  In  any  indictment,  information  or  complaint 
for  any  offense  named  in  this  act,  it -is  sufficient  to  state 
the  purpose  or  effects  of  the  trust  or  combination,  and 
that  the  accused  is  a  member  of,  acted  with  or  in  pur- 
suance of  it,  or  aided  or  assisted  in  carrying  out  its  pur- 
poses, without  giving  its  name  or  description,  or  how, 
when  and  where  it  was  created. 

SEC.  6.  In  prosecutions  under  this  act,  it  shall  be  suffi- 
cient to  prove  that  a  trust  or  combination,  as  defined 
herein,  exists,  and  that  the  defendant  belonged  to  it,  or 
acted  for  or  in  connection  with  it,  without  proving  all  the 
members  belonged  to  it,  or  proving  or  producing  any 
article  of  agreement,  or  any  written  instrument  on  which 
it  may  have  been  based ;  or  that  it  was  evidenced  by  any 
written  instrument  at  all.  The  character  of  the  trust  or 
combination  alleged  may  be  established  by  proof  of  its 
general  reputation  as  such.  In  case  any  court  of  record, 
or  in  vacation  any  judge  of  said  court  in  which  is  pend- 


60  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

ing  any  civil,  criminal  or  other  action  or  proceeding 
brought  or  prosecuted  by  the  attorney-general  or  any 
district  attorney  for  the  violation  of  any  of  the  provi- 
sions of  this  act  or  in  any  action  or  proceeding  for  the 
violation  of  the  law  of  this  state,  against  conspiracy  or 
combination  in  restraint  of  trade  so  orders,  no  person  so 
ordered  shall  be  excused  from  attending,  testifying  or 
producing  books,  papers,  schedules,  contracts,  agreements 
or  any  other  document  in  obedience  to  the  subpoena  or 
under  the  order  of  such  court  or  any  commissioner  or 
referee  appointed  by  said  court  to  take  testimony  or  any 
notary  public  or  other  person  or  officer  authorized  by  the 
laws  of  this  state  to  take  depositions  when  the  order  made 
by  such  court  or  judge  thereof  includes  a  witness  whose 
deposition  is  being  taken  before  such  notary  public  or 
other  officer  on  the  ground  or  for  the  reason  that  the  tes- 
timony or  evidence  required  of  him  may  tend  to  crimi- 
nate him  or  subject  him  to  any  penalty;  but  no  individual 
shall  be  prosecuted  or  subjected  to  any  penalty  for  or  on 
account  of  any  transaction,  matter  or  thing  concerning 
which  he  may  so  testify  or  produce  evidence,  docu- 
mentary or  otherwise,  before  any  such  court,  person  or 
officer. 

SEC.  7.  Each  and  every  firm,  person,  partnership,  cor- 
poration or  association  of  persons,  who  shall  in  any  man- 
ner violate  any  of  the  provisions  of  this  act,  shall,  for 
each  and  every  day  that  such  violations  shall  be  commit- 
ted or  continued,  after  due  notice  given  by  the  attorney- 
general  or  any  district  attorney,  forfeit  and  pay  the  sum 
of  fifty  ($50)  dollars,  which  may  be  recovered  in  the 
name  of  the  people  of  the  state  of  California,  in  any 
county  where  the  offense  is  committed,  or  where  either  of 
the  offenders  resides ;  and  it  shall  be  the  duty  of  the  attor- 
ney-general, or  the  district  attorney  of  any  county  on  the 
order  of  the  attorney-general,  to  prosecute  for  the  re- 
covery of  the  same.  When  the  action  is  prosecuted  by 
the  attorney-general  against  a  corporation  or  association 
of  persons,  he  may  begin  the  action  in  the  supreme 
(superior)  court  of  the  county  in  which  defendant  resides 
or  does  business. 

SEC.  8.  That  any  contract  or  agreement  in  violation  of 
the  provisions  of  "this  act  shall  be  absolutely  void  and 
shall  not  be  enforceable  either  in  law  or  equity. 


CALIFORNIA.  61 

SEC.  9.  That  the  provisions  hereof  shall  be  held  cumu- 
lative of  each  other  and  of  all  other  laws  in  any  way 
affecting  them  now  in  force  in  this  state. 

SEC.  10.  It  shall  not  be  lawful  for  any  person,  part- 
nership, association  or  corporation,  or  any  agent  thereof, 
to  issue  or  to  own  trust  certificates,  or  for  any  person, 
partnership,  association  or  corporation,  agent,  officer  or 
employee,  or  the  directors  or  stockholders  of  any  corpo- 
ration, to  enter  into  any  combination,  contract  or  agree- 
ment with  any  person  or  persons,  corporation  or  corpora- 
tions, or  with  any  stockholder  or  director  thereof,  the 
purpose  and  effect  of  which  combination,  contract  or 
agreement  shall  be  to  place  the  management  or  control 
of  such  combination  or  combinations,  or  the  manufac- 
tured product  thereof,  in  the  hands  of  any  trustee  or 
trustees  with  the  intent  to  limit  or  fix  the  price  or  lessen 
the  production  and  sale  of  any  article  of  commerce,  use 
or  consumption,  or  to  prevent,  restrict  or  diminish  the 
manufacture  or  output  of  any  such  article,  and  any  per- 
son, partnership,  association  or  corporation  that  shall  en- 
ter into  any  such  combination,  contract  or  agreement  for 
the  purpose  aforesaid  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  on  conviction  thereof  shall  be  punished  by 
a  fine  not  less  than  fifty  dollars,  nor  more  than  five  thou- 
sand dollars. 

SEC.  11.  In  addition  to  the  criminal  and  civil  penalties 
herein  provided,  any  person  who  shall  be  injured  in  his 
business  or  property  by  any  other  person  or  corporation 
or  association  or  partnership,  by  reason  of  anything  for- 
bidden or  declared  to  be  unlawful  by  this  act,  may  sue 
therefor  in  any  court  having  jurisdiction  thereof  in  the 
count}-  where  the  defendant  resides  or  is  found,  or  any 
agent  resides  or  is  found,  or  where  service  may  be  ob- 
tained, without  respect  to  the  amount  in  controversy,  and 
to  recover  twofold  the  damages  by  him  sustained,  and  the  • 

costs  of  suit.  Whenever  it  shall  appear  to  the  court  be- 
fore which  any  proceedings  under  this  act  may  be  pend- 
ing that  the  ends  of  justice  require  that  other  parties 
shall  be  brought  before  the  court,  the  court  may  cause 
them  to  be  made  parties  defendant  and  summoned 
whether  they  reside  in  the  county  where  such  action  is 
pending  or  not. 

SEC.  12.  The  word  "  person  "  or  "  persons  "  whenever 
used  in  this  act  shall  be  deemed  to  include  corporations, 


62  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

partnerships  and  associations  existing  under  or  author- 
ized by  the  laAvs  of  this  state  or  any  other  state,  or  any 
foreign  count  ry. 

SEC.  13.  Labor  whether  skilled  or  unskilled^  is  not  a 
commodity  within  the  meaning  of  this  act.  (Added  by 
L.  1909,  c.  362.)  (Gen.  Laws,  Sec.  4166.) 

COURT  DECISIONS. 

San  Diego  Water  Co.  v.  San  Diego  Flume  Co.,  108 
Cal.,  549. 

Merchant's  Ad— Sign  Co.  v.  Sterling,  124  Cal.,  429;  46 
L.  R.  A.,  142. 

Calif.  Steam  Navigation  &  Trust  Co.  v.  Wright 6  Cal.,  258. 

Lightner  v.  Menzel ' 35  Cal.,  452. 

Wright  f.  Ryder 36  Cal.,  342. 

More  v.  Bonner 40  Cal.,  251. 

Callaghan  v.  Donnolly .45  Cal.,  152. 

Schwalm  v.  Holmes 49  Cal.,  665. 

Weil  v.  Jones 53  Cal.,  46. 

Santa  Clara  Co.  v.  Hayes 76  Cal.,  387. 

Havermeyer  v.  Superior  Court 84  Cal.,  378. 

Brown  t\  Kling 101  Cal.,  295. 

Pacific  Factor  Co.  v.  Adler 90  Cal.,  110. 

City  Carpet  Beating  Co.  v.  Jones 102  Cal.,  506. 

Visalia  Gas  &  Elec.  Co.  v.  Sims 104  Cal.,  326. 

Kagsdale  v.  Nagle 106  Cal.,  332. 

Gregory  v.  Spieker 110  Cal.,  150. 

Herrmau  v.  Menzies 115  Cal.,  16. 

Meyers  v.  Merillion 118  Cal.,  352. 

Calif.,  etc.,  Association  v.  Stelling 141  Cal.,  720. 

Dodge  v.  Dodge 145  Cal.,  380. 

Pavkovich  v.  S.  P.  R.  R 87  Pac.  Rep.,  1097. 

Franz  v.  Bieler 126  Cal.,  176. 

Works  v.  Jones 102  Cal.,  506. 

Grogan  v.  Chaffee.- 156  Cal.,  611. 

Ghirardelli  v.  Ilunsicker  (Cartwright  Act) 164  Cal.,  355. 


COLORADO. 

CONSTITUTION,    1876. 

ART.  XV,  SEC.  5.  Xo  railroad  corporation,  or  the 
lessees  or  managers  thereof,  shall  consolidate  its  stock, 
property  or  franchises  with  any  other  railroad  corpora- 
tion owning  or  having  under  its  control  a  parallel  or 
competing  line. 

STATUTES. 

[Chapter  161  (Acts  1913).] 

TRUSTS DEFINED    AND    PROHIBITED. 

AX  ACT  Defining  and  prohibiting  trusts;  providing  procedure  to 
enforce  the  provisions  of  this  act,  and  penalties  for  violations 
of  the  provisions  of  this  act. 

SECTION  1.  A  trust  is  a  combination  of  capital,  skill  or  Trust?lti 
acts,  by  two  or  more  persons,  firms,  corporations,  or  asso- 
ciations of  persons,  or  by  any  two  or  more  of  them,  for 
either,  any  or  all  of  the  following  purposes : 

First.  To  create  or  carry  out  restrictions  in  trade  or 
commerce,  or  aids  to  commerce,  or  to  carry  out  restrictions 
in  the  full  and  free  pursuit  of  any  business  authorized  or 
permitted  by  the  laws  of  this  State. 

Second.  To  increase  or  reduce  the  price  of  merchandise, 
produce  or  commodities. 

Third.  To  prevent  competition  in  the  manufacturing, 
making,  transportation,  sale  or  purchase  of  merchan- 
dise, produce,  ores,  or  commodities,  or  to  prevent  compe- 
tition in  aids  of  commerce. 

Fourth.  To  fix  any  standard  of  figures,  whereby  the 
price  to  the  public  of  any  article  or  commodity  of  mer- 
chandise, produce  or  commerce  intended  for  sale,  use  or 
consumption  in  this  State  shall,  in  any  manner,  be  con- 
trolled or  established. 

63 


64  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

Fifth.  To  make  or  enter  into,  or  execute  or  carry  out, 
any  contract,  obligation  or  agreement  of  any  kind  or  de- 
scription by  which  they  shall  bind  or  have  to  bind  them- 
selves not  to  sell,  manufacture,  dispose  of  or  transport  any 
article  or  commodity,  or  article  of  trade,  use,  merchandise, 
commerce  or  consumption  below  a  common  standard  fig- 
ure ;  or  by  which  they  shall  agree  in  any  manner  to  keep 
the  price  of  such  article,  commodity  or  transportation  at 
a  fixed  or  graded  figure;  or  by  which  they  shall  in  any 
manner  establish  or  settle  the  price  of  any  article  or  com- 
modity or  transportation  between  them  or  themselves  and 
others  so  as  to  preclude  a  free  and  unrestricted  competi- 
tion among  themselves  or  others  in  transportation,  sale 
or  manufacture  of  any  such  article  or  commodity;  or  by 
which  they  shall  agree  so  to  pool, 'combine  or  unite  any 
interest  they  may  have  in  connection  with  the  manufac- 
ture, sale  or  transportation  of  any  such  article  or  com- 
modity, that  its  price  may  in  any  manner  be  affected. 

Against  pub-  And  all  such  combinations  are  hereby  declared  to  be 
against  public  policy,  unlawful  and  void;  provided  that 
no  agreement  or  association  shall  be  deemed  to  be  unlaw- 
ful or  within  the  provisions  of  this  act,  the  object  and 
purposes  of  which  are  to  conduct  operations  at  a  reason- 
able profit  or  to  market  at  a  reasonable  profit  those  prod- 
ucts which  cannot  otherwise  be  so  marketed;  provided 
further  that  it  shall  not  be  deemed  to  be  unlawful,  or  with- 
in the  provisions  of  this  act,  for  persons,  firms,  or  corpora- 
tions engaged  in  the  business  of  selling  or  manufacturing 
commodities  of  a  similar  or  like  character  to  employ, 
form,  organize  or  own  any  interest  in  any  association, 
firm  or  corporation  having  as  its  object  or  purpose  the 
transportation,  marketing  or  delivering  of  such  commod- 
ities ;  and  provided  further  that  labor,  whether  skilled  or 
unskilled,  is  not  a  commodity  within  the  meaning  of  this 
act. 

Lawful  agree-     SECTION  2.  It  shall  be  lawful  to  enter  into  agreements 

meats.  . 

or  form  associations  or  combinations,  the  purpose  and 
effect  of  which  shall  be  to  promote,  encourage  or  increase 
competition  in  any  trad»  or  industry,  or  which  are  in  fur- 
therance of  trade. 

Genera*  or ' Di/-  SECTION  3.  For  a  violation  of  any  of  the  provisions  of 
tnis  act  by  any 'corporation,  or  by  any  of  its  officers  or 
agents  mentioned  herein,  it  shall  be  the  duty  of  the  attor- 
ney general  of  this  State,  or  district  attorney  of  any  dis- 
trict in  which  said  violation  may  occur,  or  either  of  them, 
upon  his  own  motion  to  institute  an  action  in  any  court 


COLOKADO.  65 

in  this  State  having  jurisdiction  thereof  for  the  forfeiture 
of  the  charter,  rights  and  franchise  of  such  corporation, 
and  the  dissolution  of  its  existence. 

SECTION  4.  Every  foreign  corporation,  as  well  as  every     Foreign  cor- 

•  ...  .    .  j>    ,-,  /.  porations     vio- 

foreign  association,  exercising  any  of  the  powers,  f ran-  lating  this  act. 
chises  or  functions  of  a  corporation  in  this  State,  violat- 
ing any  of  the  provisions  of  this  act,  is  hereby  denied  the 
right  and  prohibited  from  doing  any  business  in  this 
State,  and  it  shall  be  the  duty  of  the  Attorney  General  to 
enforce  this  provision  by  bringing  proper  proceedings  by 
injunction  or  otherwise. 

SECTION  5.  Each  and  every  person,  company  or  corpo-  violations, 
ration,  the  officers,  agents  or  representatives  thereof,  vio- 
lating any  of  the  provisions  of  this  act  shall  be  deemed 
guilty  of  a  misdemeanor,  and  on  conviction  thereof  shall 
be  subject  to  a  fine  of  not  more  than  one  thousand  dollars, 
or  to  imprisonment  for  not  more  than  six  months ;  and  it 
shall  be  the  duty  of  the  Attorney  General  of  the  State, 
or  the  district  attorney  of  any  district  in  the  State,  in 
which  said  violation  shall  occur,  or  either  of  them,  to 
prosecute  and  enforce  the  provisions  of  this  act. 

SECTION  6.  Any  contract  or  agreement  in  violation  of     contracts  in 

.  \  .  _  violation,  void. 

any  of  the  provisions  of  this  act  shall  be  absolutely  void 
and  not  enforceable  in  any  of  the  courts  of  this  State; 
and  when  any  civil  action  shall  be  commenced  in  any 
court  of  this  State  it  shall  be  lawful  to  plead  in  defence 
thereof  that  the  cause  of  action  sued  upon  grew  out  of 
a  contract  or  agreement  in  violation  of  the  provisions  of 
this  act. 

SECTION  7.  That  any  person,  firm,  company  or  corpo-  Action  for 
ration  that  may  be  damaged  by  any  such  agreement,  trust 
or  combination  described  in  Section  1  of  this  act,  may  sue 
for  and  recover  in  any  court  of  competent  jurisdiction  in 
this  State,  of  any  person,  company  or  corporation  operat- 
ing such  trust  or  combination,  such  damages  as  may  have 
been  thereby  sustained. 

SECTION  8.  In  any  proceeding  pending  in  any  court  of  fr  NJ  teestifUine 
record  brought  or  prosecuted  by  the  Attorney  General,  ^cause^of  in- 
or  any  district  attorney,  for  the  violation  of  any  of  the 
provisions  of  this  act,  no  person  shall  be  excused  from 
attending,  testifying  or  producing  books,  papers,  sched- 
ules, contracts,  agreements  or  any  other  document,  in 
obedience  to  the  subpoena  or  under  the  order  of  such 
court,  or  any  commissioner  or  referee  appointed  by  said 
16491—13 5 


66  LAWS  ON   TRUSTS  AND   MONOPOLIES. 

court  to  take  testimony,  or  any  notary  public,  or  other 
person  or  officer  authorized  by  the  laws  of  this  State  to 
take  depositions,  when  the  orders  made  by  such  court,  or 
judge  thereof,  included  a  witness  whose  deposition  is  be- 
ing taken  before  such  notary  public  or  other  officer,  on 
the  ground  or  for  the  reason  that  the  testimony  or  evi- 
ience  required  of  him  may  tend  to  criminate  him  or  sub- 
No  prosecu-  ject  him  to  any  penalty;  but  no  individual  shall  be  prose- 

tton  because  ofj  i  •      5  i   j.  * 

evidence  given,  cuted  or  subjected  to  any  penalty  for  or  on  account  of 
any  transaction,  matter  or  thing  concerning  which  he 
may  so  testify  or  produce  evidence,  documentary  or  other- 
wise, before  any  such  court,  person  or  officer. 
Approved  April  Tth  1913,  at  9 :03  A  M.  o'clock. 


CONNECTICUT. 

CONSTITUTION,    1818. 

ART.  I,  SEC.  1.  We  declare,  That  all  men  when  they 
form  a  social  compact,  are  equal  in  rights;  and  that  no 
man  or  set  of  men  are  entitled  to  exclusive  public  emolu- 
ments or  privileges  from  the  community. 

STATUTES. 

[Chapter  185  Acts  1911.] 
AN  ACT  Concerning  Combinations  to  increase  Prices  of  Necessities. 

Any  person  who,  for  himself  or  as  a  member  of  any 
firm  or  an  officer  or  agent  of  any  corporation,  conspires  necessities  pro- 
with  or  enters  into  any  combination  or  agreement  with 
any  other  person  or  any  firm  or  corporation  for  the  pur- 
pose of  fixing  or  maintaining  a  higher  price,  at  wholesale 
or  retail,  for  ice,  coal,  or  any  other  necessity  of  life  than 
would  prevail  except  for  such  conspiracy,  combination,  or 
agreement,  or  of  limiting  or  restraining  the  production, 
manufacture,  shipment,  or  sale  of  any  such  commodity 
for  the  purpose  of  increasing  the  price  thereof,  shall  be 
fined  not  more  than  one  thousand  dollars,  or  imprisoned 
not  more  than  five  years,  or  both. 

Approved,  August  15,  1911. 

COURT  DECISIONS. 

The  Norwich  Gas  Light  Co.  v.  The  Norwich  City  Gas 
Co.,  25  Conn.,  18. 

The  State  v.  Brennan's  Liquors,  25  Conn.,  277. 
Connors  v.  Connolly,  Conn.  Rep.  86,  641. 

67 


DELAWARE. 

There  are  no  anti-trust  statutes  in  Delaware. 


69 


DISTRICT  OF  COLUMBIA. 

The  general  statutes  of  the  United  States  (26  Stats,  at 
Large,  209;  Sup.  2d  Ed.,  p.  762),  and  other  laws  prohib- 
iting unlawful  restraints  of  trade,  monopolies  and  com- 
bines, are  in  force  in  this  District. 

71 


FLORIDA. 

STATUTES,    1906. 

SEC.  3160.  Every  arrangement,  contract,  agreement, 
trust,  or  combination  between  persons  or  corporations,  or 
between  any  person  and  any  corporation,  made  with  a 
view  to,  or  tending  to  prevent,  hinder  or  obstruct  the 
lawful  sale  in  this  State,  or  any  place  therein,  of  beef  or 
other  fresh  meat  of  cattle  or  any  other  edible  animal 
raised,  fattened  or  fed  in  the  State  of  Florida,  or  any 
other  beef  or  fresh  meat,  or  with  a  view  to  or  tending  to 
prevent,  hinder  or  obstruct  the  lawful  sale  of  any  cattle 
or  other  edible  animal  in  this  State,  or  any  place  therein, 
or  which  shall  tend  to  monopolize  or  control  the  sale  or 
price  of  beef  or  other  fresh  meat  in  .this  State,  or  any 
place  therein,  is  hereby  declared  to  be  against  public 
policy. 

SEC.  3161.  Any  corporation  chartered  under  the  laws 
of  this  State,  which  shall  violate  any  of  the  provisions  of 
the  preceding  section  shall  thereby  forfeit  its  charter 
and  franchises,  and  its  corporate  existence  shall  there- 
upon cease  and  determine.  Every  foreign  corporation 
which  shall  violate  any  of  the  provisions  of  said  section, 
is  hereby  denied  the  right  to  do  and  is  prohibited  from 
doing  business  in  this  State.  It  is  hereby  made  the  duty 
of  the  Attorney- General  of  this  State  to  enforce  this 
provision  by  due  process  of  law. 

COURT  DECISIONS. 

Barbee  v.  Jacksonville  &  A.  Plank  Road  Co.,  6  Fla., 
262. 

Stewart  &  Bro.  v.  Stearns  &  Culver  Lbr.  Co.,  56  Fla., 
570. 

73 


GEORGIA. 

CONSTITUTION. 

ART.  IV,  SEC.  2.  The  General  Assembly  of  this  state 
shall  have  no  power  to  authorize  any  corporation  to  buy 
shares  or  stock  in  any  other  corporation  in  this  state  or 
elsewhere,  or  to  make  any  contract  or  agreement  what- 
ever, with  any  such  corporation,  which  may  have  the 
effect,  or  be  intended  to  have  the  effect,  to  defeat  or 
lessen  competition  in  their  respective  businesses,  or  to 
encourage  monopoly;  and  all  such  contracts  and  agree- 
ments shall  be  illegal  and  void. 

STATUTES,    1896. 

SEC.  1.  That,  from  and  after  the  passage  of  this  Act, 
all  arrangements,  contracts,  agreements,  trusts  or  combi- 
nations between  persons  or  corporations  made  with  a 
view  to  lessen,  or  which  tend  to  lessen,  full  and  free  com- 
petition in  the  importation  or  sale  of  articles  imported 
into  this  State,  or  in  the  manufacture  or  sale  of  articles 
of  domestic  growth  or  of  domestic  raw  material,  and  all 
arrangements,  contracts,  agreements,  trusts  or  combina- 
tions between  persons  or  corporations  designed,  or  which 
tend  to  advance,  reduce  or  control  the  price  or  the  cost 
to  the  producer  or  to  the  consumer  of  any  such  product 
or  article,  are  hereby  declared  to  be  against  public  policy, 
unlawful  and  void. 

SEC.  2.  Be  it  further  enacted  l>y  the  authority  afore- 
said, That  any  corporation,  chartered  under  the  laws  of 
this  State,  which  shall  violate  any  of  the  provisions  of 
this  Act  shall  thereby  forfeit  its  charter  and  its  franchise, 
and  its  corporate  existence  shall  thereupon  cease  and  de- 
termine. Every  foreign  corporation,  which  shall  violate 
any  of  the  provisions  of  this  Act,  is  hereby  denied  the 
right  to  do,  and  is  prohibited  from  doing,  business  in  this 
State.  It  is  hereby  made  the  duty  of  the  Attorney- Gen- 
eral of  the  State  to  enforce  this  provision  by  due  process 
of  law. 

75 


76  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

SEC.  3.  Be  it  -further  enacted  by  the  authority  afore- 
said, That  any  violation  of  the  provisions  of  this  Act 
shall  be  deemed,  and  is  hereby  declared  to  be  destructive 
of  full  and  free  competition  and  a  conspiracy  against 
trade,  and  any  person  or  persons  who  may  engage  in  any 
such  conspiracy,  or  who  shall,  as  principal,  manager, 
director  or  agent,  or  in  any  other  capacity,  knowingly 
carry  out  any  of  the  stipulations,  purposes,  prices,  rates 
or  orders  made  in  furtherance  of  such  conspiracy,  shall, 
on  conviction,  be  punished  by  a  fine  of  not  less  than  one 
hundred  dollars  or  more  than  five  thousand  dollars  and 
by  imprisonment  in  the  penitentiary  not  less  than  one 
year  nor  more  than -ten  years;  or,  in  the  judgment  of  the 
court,  by  either  such  fine  or  such  imprisonment. 

SEC.  4.  Be  it  further  enacted  by  the  authority  afore- 
said, That  the  provisions  of  this  Act  shall  not  apply  to 
agricultural  products  or  live  stock  while  in  the  possession 
of  the  producer  or  raiser. 

SEC.  5.  Be  it  further  enacted  by  the  authority  afore- 
said, That  any  person  or  persons,  or  corporations  that 
may  be  injured  or  damaged  by  any  such  arrangement, 
contract,  agreement,  trust  or  combination,  described  in 
Section  one  of  this  Act,  may  sue  for  and  recover,  in  any 
court  of  competent  jurisdiction  in  this  State,  of  any  per- 
son, persons  or  corporation  operating  such  trust  or  com- 
bination, the  full  consideration  or  sum  paid  by  him  or 
them  for  any  goods,  wares,  merchandise  or  articles  the 
sale  of  which  is  controlled  by  such  combination  or  trust. 

SEC.  6.  Be  it  further  enacted  by  the  authority  afore- 
said, That  it  shall  be  the  duty  of  the  Judges  of  the 
Superior  Courts  of  this  State  specially  to  instruct  the 
grand  juries  as  to  the  provisions  of  this  Act. 

SEC.  7.  Be  it  further  enacted  by  the  authority  afore- 
said, That  all  laws  and  parts  of  laws  in  conflict  with  the 
provisions  of  this  Act  be,  and  the  same  are,  hereby  re- 
pealed. 

Approved  December  23,  1896. 

GEORGIA  CODE. 

[Section  9.] 

w» 

POOLING. 

p.ioe.  1890~1'     SEC.  2466.  It  shall  be  unlawful  for  any  insurance  com- 
24||cs-     6466>pany,  or  companies,  authorized  to  do  business  in  this 


GEORGIA.  77 

State,  or  the  agent  or  agents  thereof,  to  make,  maintain, 
or  enter  into  any  contract,  agreement,  pool,  or  other  ar- 
rangement with  any  other  insurance  company,  or  com- 
panies, licensed  to  do  business  in  this  State,  or  the  agent 
or  agents  thereof,  for  the  purpose  of,  or  that  may  have  the 
tendency  or  effect  of,  preventing  or  lessening  competition 
in  the  business  of  insurance  transacted  in  this  State.  And 
when  it  shall  be  made  to  appear  to  the  commissioner  of 
insurance  that  any  company,  or  companies,  agent,  or 
agents  have  entered  into  any  such  contract,  agreement, 
pool,  or  other  arrangement,  said  commissioner  shall  re- 
voke the  license  issued  to  such  company  or  companies., 
and  the  same  shall  not  be  reissued  until  the  president  or 
chief  officer  of  such  company  or  companies  shall  file  an 
affidavit  with  said  commissioner,  stating  that  such  con- 
tracts, agreements,  pools,  or  other  arrangements  have 
been  annulled  and  made  void :  Provided,  that  nothing  in 
this  Article  shall  be  so  construed  as  to  prevent  any  insur- 
ance company,  legally  authorized  to  transact  business  in 
this  State,  from  separately  surveying,  inspecting,  or  ex- 
amining the  premises  to  be  insured,  by  and  with  the  con- 
sent of  the  owner,  for  the  purpose  of  bringing  about  im- 
provements in  fire  protection,  so  as  to  lessen  the  cost  of 
insurance  by  reducing  rates. 

SEC.  2597.  Any  railroad  company  incorporated  under  5iActs  1892>  p" 
the  provisions  of  this  Article  shall  have  authority  to  sell,  2607-26102591' 
lease,  assign,  or  transfer  its  stock,  property,  and  fran- 
chises to,  or  to  consolidate  the  same  with,  those  of  any 
other  railroad  company  incorporated  under  the  laws  of 
this  or  any  other  State  or  of  the  United  States,  whose  rail- 
road within  or  without  this  State  shall  connect  with  or 
form  a  continuous  line  with  the  railroad  of  the  company 
incorporated  under  this  law,  upon  such  terms  as  may  be 
agreed  upon ;  and  conversely  any  such  corporation  organ- 
ized under  the  provisions  of  this  Article  may  purchase, 
lease,  consolidate  with,  absorb,  and  merge  into  itself  the 
stock,  property,  and  franchises  of  any  other  railroad 
company  incorporated  under  the  laws  of  this  or  any  other 
State  or  the  United  States,  whose  railroad  within  or 
without  this  State  shall  connect  with  or  form  a  continuous 
line  or  system  with  the  railroad  of  such  company  incor- 
porated under  this  law,  upon  such  terms  as  may  be  agreed 
upon.  And  it  shall  be  lawful  for  any  railroad  company 
or  corporation  now  or  hereafter  formed  by  the  consolida- 
tion of  one  or  more  railroad  companies,  or  corporations, 


78  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

organized  under  the  laws  of  this  State,  or  under  the  lawn 
of  this  State  and  any  other  States,  with  one  or  more  com- 
panies or  corporations  organized  under  the  laws  of  any 
other  State,  or  under  the  laws  of  this  and  other  States, 
to  issue  its  bonds  and  stock  as  provided  for  in  this  Article, 
in  such  amounts  as  they  may  deem  necessary  for  the  pur- 
pose of  paying  or  exchanging  the  same  for  or  retiring 
any  bonds  or  stocks  theretofore  issued  by  either  of  the 
said  companies,  or  corporations,  so  merged,  purchased,  or 
consolidated,  or  for  any  other  purpose,  and  to  the  amount 
authorized  by  the  laws  of  the  State  under  which  either 
of  said  companies,  or  corporations,  so  consolidated  was 
organized,  and  to  secure  the  same,  in  case  of  bonds,  by 
mortgages  or  trust  deeds  upon  its  real  or  personal  prop- 
erty, franchises,  rights,  and  privileges,  whether  within  or 
without  this  State:  Provided,  that  no  railroad  company 
shall  make  any  contract  under  the  provisions  of  this  sec- 
tion with  any  other  railroad  company  which  is  a  com- 
peting line,  that  is  calculated  to  defeat  or  lessen  competi- 
tion in  this  State  or  to  encourage  monopoly. 

Acts  1890-1,  SEC.  2614.  All  street-railroad  companies  may  lease  or 
'  Sees.  6466,  sell  their  road,  franchises,  and  other  property  to  any 
other  corporation  created  by  the  laws  of  this  State 
for  street-railroad  purposes;  and  their  franchises  and 
property  so  sold  shall  remain  liable  in  the  hands  of  the 
lessee  or  purchaser  for  all  debts  or  claims  against  the 
company  making  the  conveyance.  Nothing  in  this  sec- 
tion shall  be  construed  to  authorize  any  such  company  to 
sell,  lease,  or  otherwise  dispose  of  any  of  its  property  or 
franchises  so  as  to  defeat  or  lessen  competition,  or  to 
encourage  monopoly. 
Sees.  394,  SEC.  4253.  A  contract  which  is  against  the  policy  of  the 

3132,   1340,  ,  .,  •     ,. 

2545,  2665,  law  can  not  be  enforced;  such  are  contracts  tending  to 

2785,   6466,  ,       .   ,       .  '  .      ,.    .  .  , 

3465,  4247,  corrupt  legislation  or  the  judiciary,  contracts  in  general 
in  restraint  of  trade,  contracts  to  evade  or  oppose  the 
revenue  laws  of  another  country,  wagering  contracts, 
contracts  of  maintenance  or  champerty. 

COURT  DECISIONS. 

Brown  v.  Jacobs  Pharmacy  Co.,  115  Ga.,  429;  57  L.  R, 
A.,  547. 

Trust  Company  of  Ga.  v.  State,  109  Ga.,  736. 
State  v.  Cen.  of  Ga.  Ry.  Co.,  109  Ga.,  716. 
Central  of  Ga.  Ry.  Co.  v.  Collins,  40  Ga.,  582. 
Dady  v.  Georgia  &  A.  Ry.,  112  Fed.,  838. 


IDAHO. 

CONSTITUTION. 

ART.  XI.,  SEC.  18.  No  incorporated  company  nor  any 
association  of  persons  or  stock  company,  in  the  State  of 
Idaho,  shall  directly  or  indirectly  combine  or  make  any 
contract  with  any  other  incorporated  company,  foreign  or 
domestic,  through  the  stockholders  or  the  trustees  or  as- 
signees of  such  stockholders  in  any  manner  whatsoever, 
for  the  purpose  of  fixing  the  price  or  regulating  the  pro- 
duction of  any  article  of  commerce  or  of  the  produce  of 
the  soil  or  of  consumption  by  the  people;  and  that  the 
legislature  be  required  to  pass  laws  for  the  enforcement 
thereof,  by  adequate  penalties,  to  the  extent,  if  necessary 
for  that  purpose  of  the  forfeiture  of  their  property  and 
franchise. 

STATUTES  (ACTS  1909). 

SECTION  1.  It  shall  be  unlawful  for  any  incorporated 
company,  association  of  persons  or  stock  company  in  this 
state,  directly  or  indirectly  to  combine  or  make  any  con- 
tract with  any  incorporated  company  foreign  or  domes- 
tic, through  their  stockholders,  or  the  trustees  or  as- 
signees of  such  stockholders,  or  in  any  manner  whatso- 
ever, for  the  purpose  of  fixing  the  price  or  regulating  the 
production  of  any  article  of  commerce  or  of  produce  of 
the  soil,  or  of  consumption  by  the  people.  (An  act  to 
prohibit  combinations  in  restraint  of  trade  and  to  pro- 
vide punishment  for  violations  thereof,  approved  March 
11,  1909;  L.  1909,  p.  297.) 

SEC.  2.  A  violation  of  the  provisions  of  Section  1  of 
this  Act  shall  constitute  a  misdemeanor  and  be  pun- 
ished by  a  fine  of  not  exceeding  Five  Thousand  Dollars 
pr  by  imprisonment  in  the  county  jail  not  exceeding  one 
year,  or  by  both  such  fine  and  imprisonment.  (Id., 
Sec.  2.) 

SEC.  3.  If  the  violation  of  Section  1  of  this  Act  is  com- 
mitted by  an  association  of  persons,  or  by  a  stock  com- 
pany, all  of  the  persons  forming  such  association  or  being 

79 


80  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

members  of  such  stock  company  shall  be  equally  liable 
and  punishable  as  provided  by  Section  2  hereof,  and  if 
the  offense  is  committed  by  a  corporation,  the  directors  of 
said  corporation  shall  be  held  personally  liable  and  pun- 
ishable as  provided  by  Section  2,  and  in  addition  thereto 
the  court  may  impose  against  said  corporation  a  fine  not 
exceeding  Five  Thousand  Dollars,  and  may  declare  its 
franchise  forfeited.  (Id.,  Sec.  3.) 

ANTI-TRUST  ACT  OF   1911. 

SECTION  1.  That  every  contract,  combination  in  the 
form  of  trust  or  otherwise,  or  conspiracy  in  restraint  of 
trade  or  commerce,  within  this  state,  is  hereby  declared  to 
be  illegal.  Every  person  who  shall  make  any  such  con- 
tract or  engage  in  any  such  combination  or  conspiracy, 
shall  be  deemed  guilty  of  a  misdemeanor,  and  on  convic- 
tion thereof,  shall  be  punished  by  fine  not  exceeding  five 
thousand  dollars  ($5,000)  or  by  imprisonment  not  ex- 
ceeding one  (1)  year,  or  by  both  such  punishments,  in  the 
discretion  of  the  court. 

SEC.  2.  That  every  person  who  shall  monopolize,  or  at- 
tempt to  monopolize  or  combine,  or  conspire  with  any 
other  person  or  persons,  to  monopolize  any  part  of  the 
trade  or  commerce,  within  this  state,  shall  be  deemed 
guilty  of  a  misdemeanor,  and  on  conviction  thereof  shall 
be  punished  by  a  fine  not  exceeding  five  thousand  dollars 
($5,000)  or  by  imprisonment  not  exceeding  one  (1)  year, 
or  by  both  said  punishments,  in  the  discretion  of  the 
court. 

SEC.  3.  That  any  property  owned  under  any  contract 
or  by  any  combination,  or  pursuant  to  any  conspiracy 
(and  being  the  subject  thereof),  mentioned  in  the  fore- 
going sections  of  this  act,  shall  be  forfeited  to  the  state. 

SEC.  4.  That  every  person,  corporation,  joint  stock 
company,  or  other  association,  engaged  in  business  within 
this  state,  who  shall  enter  into  any  contract,  combination 
or  conspiracy,  or  who  shall  give  any  direction  or  author- 
ity to  do  any  act,  for  the  purpose  of  driving  out  of  busi- 
ness any  other  person  engaged  therein,  or  who  for  such 
purpose  shall  in  the  course  of  such  business  sell  any  ar- 
ticle or  product  at  less  than  its  fair  market  value,  or  at  a, 
less  price  than  it  is  accustomed  to  demand  'or  receive 
therefor  in  any  other  place  under  like  conditions ;  or  who 


IDAHO.  81 

shall  sell  any  article  upon  a  condition,  contract  or  under- 
standing that  it  shall  not  be  sold  again  by  the  purchaser, 
or  restrain  such  sale  by  the  purchaser,  shall  be  deemed 
guilty  of  a  misdemeanor  and  on  conviction  thereof,  shall 
be  punished  by  a  fine  not  exceeding  five  thousand  dollars 
($5,000)  or  by  imprisonment  not  exceeding  one  (1)  year, 
or  by  both  said  punishments,  in  the  discretion  of  the 
court. 

SEC.  5.  That  all  the  books  of  record  and  papers  of 
every  corporation,  joint  stock  company,  or  other  associa- 
tion, engaged  in  business  within  this  state  shall  be  sub- 
ject to  inspection  by  the  attorney-general  of  this  state,  or 
by  any  agent  he  may  designate  for  that  purpose,  and  such 
corporation,  joint  stock  company,  or  other  association 
shall,  at  such  times  as  he  shall  prescribe,  make  such  re- 
turns duly  verified  by  an  officer  of  such  corporation,  joint 
stock  company  or  association,  as  shall  be  by  him  pre- 
scribed either  by  general  regulations  or  by  special  direc- 
tion. 

SEC.  6.  That  any  president,  director,  treasurer,  officer, 
corporator,  copartner,  associate  or  agent  of  such  corpo- 
ration, joint  stock  company  or  other  association,  who 
shall  in  its  behalf  do  anything  by  this  act  prohibited  to 
such  corporation,  joint  stock  company,  or  other  associa- 
tion, or  who  shall  support,  vote  for,  aid  and  abet,  or  take 
part  in  doing  such  action  by  said  corporation,  joint  stock 
company,  or  other  association,  or  any  instrumentality 
thereof,  shall  be  liable  to  the  penalties  by  this  act  pro- 
vided. 

SEC.  7.  That  any  corporation,  joint  stock  company,  or 
other  association  that  shall  have  been  twice  adjudged  to 
have  violated  the  provisions  of  this  act  by  the  final  judg- 
ment of  any  court  having  jurisdiction  of  the  question  in 
any  civil  suit  or  proceeding  in  which  said  corporation, 
joint  stock  company,  or  other  association  shall  have  been 
a  party,  who  shall  thereafter  violate  this  act,  or  who 
shall  fail  to  make  the  returns  herein  required,  at  the  time 
specified,  shall  no  longer  be  allowed  to  engage  in  busi- 
ness within  this  state;  provided,  that  such  prohibition 
shall  only  be  enforced  after  such  corporation,  joint  stock 
company  or  other  association  shall  have  been  enjoined 
against  further  engaging  in  such  business,  on  an  infor- 
mation or  suit  brought  in  a  court  of  competent  jurisdic- 
tion, by  the  attorney-general  in  behalf  of  this  state.  It 

16491—13 6 


82  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

shall  be  the  duty  of  the  attorney-general  in  such  case, 
unless  he  shall  be  satisfied  that  such  corporation,  joint 
stock  company  or  other  association  has  desisted  and  ab- 
stained and  will  in  future  desist  and  abstain  from  such 
violation,  to  enforce  the  provision  by  proceeding,  either 
by  information  or  by  indictment,  as  he  may  in  his  discre- 
tion think  best.  Any  corporation,  joint  stock  company 
or  other  association  which  shall  be  charged  with  violating 
this  act,  and  any  president,  director,  treasurer,  officer  or 
agent  thereof,  may  be  joined  as  a  party  in  any  proceed- 
ing, civiror  criminal,  to  enforce  this  act.  :If  in  the  judg- 
ment of  'the-  attorney-general,  such  corporation,  joint 
stock  company  or  other  association  against  which  any 
civil  proceeding  may  be  instituted  by  one  on  which  the 
public  is  so  depending  that  the  interruption  of  its  busi- 
ness' will  cause  serious  public  loss  or  inconvenience,  he 
may  in  his  discretion,  refrain  from  proceeding  to  obtain 
a  decree  which  will  absolutely  prevent  the  continuance  of 
such  business  and  may  apply  for  a  limited  or  conditional 
decree,  or,  one  to  take  effect  at  a  future  day.  as  the  public 
interests  shall  seem  to  require.  And  if,  in  the-;judgment 
of  the  court  before  whom  such  proceeding  may  be  pend- 
ing, the  interruption  of  the  business  of  the  defendant 
corporation,  joint  stock  company  or  other  association, 
will  cause  such  serious  public  loss  or  inconvenience,  the 
court  may  decline  to  enter  an  absolute  decree  enjoining 
it  against  proceeding  with  its  business,  and  may  enter  a 
modified  or  conditional  decree,  or  such  decree  to  take 
effect  at  a  future  time,  as  justice  shall  require.  The 
court  may  also  in  its  discretion,  enjoin  such  officers  or 
agents  or  servants  of  such  corporation,  joint  stock  com- 
pany or  other  association  from  continuing  in  its  service, 
and  enjoin  any  such  corporation,  joint  stock  company,  or 
other  association  from  continuing  their  employment 
therein,  as  the  case  shall  seem  to  require. 

SEC.  8.  That  any  corporation,  joint  stock  company  or 
other  association^  and  -  any  president,  director,  treasurer, 
officer,  corporation,  co-partner,  associate  or  agent  thereof , 
who  shall  in  its  behalf,  after  the  first  day  of  January  in 
the  year  1912  engage  in  such  business  in  violation  of  this 
act,  shall  for  eaoh  offense,  in  addition  to  such  penalty  for 
contempt  as  the  court  in  case  of  disobedience  to  its  lawful 
order  may  impose,  be  punished  by  a  fine  not  exceeding 
five  thousand  dollars  ($5,000)  or  by  imprisonment  -not 


IDAHO.  83 

exceeding  one  (1)  year,  or  by  both  said  punishments,  in 
the  discretion  of  the  court. 

SEC.  9.  That  every  president,  treasurer,  general  man- 
ager, agent  or  other  person  usually  exercising  the  powers 
of  such  officers  of  any  corporation,  joint  stock  company, 
or  other  association,  who  has  himself,  in  its  behalf,  vio- 
lated, united  to  violate,  or  voted  for  or  consented  to  the 
violation  of  any  of  the  provisions  of  this  act,  shall  there- 
after be  personally  liable  for  all  the  debts  and  obligations 
of  any  such  corporation,  joint  stock  company,  or  other 
association,  created  while  such  person  holds  such  office  or 
agenc}^,  whether  under  the  same  or  subsequent  elections 
or  appointments. 

SEC.  10.  That  it  shall  be  unlawful  for  any  person  or 
persons  to  offer,  grant  or  give,  or  to  solicit,  accept  or  re- 
ceive any  rebate,  concession,  or  service  in  respect  of  the 
transportation  of  any  property  within  this  state  by  any 
common  carrier,  whereby  any  such  property  shall,  by  any 
device  whatever,  be  transported  at  a  less  rate  than  named 
in  the  tariffs  published,  and  filed  by  such  carrier,  as  is 
required  by  law,  or  charged  others  for  like  service.  Every 
person  who  shall  offer,  grant,  or  give  or  solicit,  accept  or 
receive  any  such  rebate,  concession  or  service  shall  be 
deemed  guilty  of  a  misdemeanor,  and  on  conviction  there- 
of shall  be  punished  by  a  fine  of  not  less  than  five  thou- 
sand dollars  ($5,000). 

SEC.  11.  That  if  any  joint  stock  company,  corporation 
or  combination  or  any  agent  thereof,  shall  solicit,  accept 
or  receive  any  such  rebate,  concession  or  service  as  is 
hereinabove  described  to  be  unlawful,  it  shall  be  unlaw- 
ful thereafter  to  transport  within  this  state  any  article 
owned  or  controlled  by  such  company,  corporation  or 
combination  or  produced  or  manufactured  by  it,  by 
whomsoever  the  same  may  be  owned  or  controlled. 
If  any  such  joint  stock  company,  corporation  or  combi- 
nation, shall  offer,  grant  or  give  any  special  prices,  in- 
ducements or  advantages  for  the  sale  of  articles  produced, 
manufactured,  owned  or  controlled  by  it  to  purchasers  in 
any  particular  locality  in  order  to  restrict  or  destroy  com- 
petition in  that  locality  in  the  sale  of  such  articles,  it  shall 
be  unlawful  thereafter  to  transport  within  this  state  any 
article  owned  or  controlled  by  it  or  produced  or  manufac- 
tured by  it,  by  whomsoever  the  same  may  be  owned  or 
controlled;  provided,  however,  that  the  prohibition  im- 


84  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

posed  under  this  section  shall  not  apply  to  any  article 
purchased  bona  fide  before  decree  made  in  pursuance 
hereof  against  the  joint  stock  company,  corporation  or 
combination,  producing,  manufacturing,  or  theretofore 
owning  or  controlling  the  same;  and  provided  further, 
that  even  after  decree  any  such  article  may  be  relieved 
from  the  prohibition  imposed  under  this  section,  if  the 
owner  thereof  shall  show  to  the  satisfaction  of  the  court 
having  jurisdiction  of  the  matter,  hereinafter  provided, 
that  such  articles  were  purchased,  bona  fide,  without  no- 
tice, and  within  thirty  (30)  days  after  the  entry  of  such 
decree.  Any  transportation  company,  and  any  officer, 
agent  or  representative  thereof,  knowingly  concerned  in 
the  transportation  of  articles  within  this  state,  contrary 
to  the  prohibition  of  this  section,  shall  be  punished  by 
a  fine  of  not  less  than  five  thousand  dollars  ($5,000). 

SEC.  12.  That  the  several  courts  of  record  of  this  state 
having  equity  jurisdiction  are  hereby  invested  with  juris- 
diction to  prevent  and  restrain  all  violations  of  this  act, 
and  especially  the  offering,  granting,  giving,  soliciting, 
accepting  or  receiving  any  such  rebate,  concession,  or  serv- 
ice by  any  person  or  persons ;  and  to  prevent  or  restrain 
any  such  joint  stock  company,  corporation  or  combination, 
who  shall  have  solicited,  accepted  or  received  any  such  re- 
bate, concession  or  service,  or  who  shall  have  offered, 
granted  or  given  any  special  prices,  inducements  or  advan- 
tages in  order  to  restrict  or  destroy  competition  in  particu- 
lar localities  from  engaging  in  commerce  within  this  state. 
Such  proceedings  may  be  by  way  of  petition  setting  forth 
the  cause  of  action  and  praying  that  the  acts  hereby  made 
unlawful  shall  be  enjoined  or  otherwise  prohibited. 
When  the  parties  complained  of  shall  be  duly  notified  of 
such  petition,  the  court  shall  proceed  as  soon  as  may  be 
to  the  hearing  and  determination  of  the  case,  and  upon 
such  petition  and  before  final  decree  the  court  may  at  any 
time  make  such  temporary  restraining  order  or  prohibi- 
tion as  shall  be  deemed  just.  The  court  may  retain  juris- 
diction of  the  cause  after  the  decree,  for  the  purpose  of 
such  subsequent  modification  of  the  same  as  may  be  made 
to  appear  equitable  and  just  in  the  premises. 

SEC.  13.  That' whenever  it  shall  appear  to  the  court 
before  which  any  civil  proceedings  under  this  act  shall  be 
pending,  that  the  ends  of  justice  require  that  other  par- 
ties shall  be  brought  before  the  court,  the  court  may  cause 


IDAHO.  85 

them  to  be  summoned,  whether  they  reside  in  the  county 
where  the  court  is  held  or  not,  and  subpoenas  to  that  end 
may  be  served  in  any  county  by  the  sheriff  thereof. 

SEC.  14.  That  any  person  who  shall  be  injured  in  his 
business  or  property  by  any  other  person  or  persons  by 
reason  of  anything  forbidden  or  declared  to  be  unlawful 
by  this  act  may  sue  therefor  in  any  court  of  record  in 
this  state  in  the  county  in  which  the  defendant  or  de- 
fendants reside  or  are  found,  without  respect  to  the 
amount  in  controversy,  and  shall  recover  threefold  the 
damages  by  him  sustained  and  the  costs  of  suit,  including 
a  reasonable  attorney's  fee. 

SEC.  15.  That  the  word  "  person  "  or  "  persons  "  as  used 
in  the  sections  of  this  act,  shall  be  deemed  to  include  all 
corporations,  associations,  combinations  or  concerns 
whatsoever. 

SEC.  16.  That  in  any  suit  in  equity  brought  in  any  court 
of  this  state  under  this  act  wherein  the  state  is  complain- 
ant, the  attorney-general  may  file  with  the  clerk  of  such 
court  a  certificate  that,  in  his  opinion,  the  case  is  of  gen- 
eral public  importance,  a  copy  of  which  shall  be  immedi- 
ately furnished  by  such  clerk  to  the  judge  of  the  court  in 
which  the  case  is  pending.  Thereupon  such  case  shall  be 
given  precedence  over  others  and  in  every  way  expedited, 
and  be  assigned  for  hearing  at  the  earliest  practicable 
day.  An  appeal  from  the  final  decree  of  the  court  will 
lie  only  to  the  supreme  court. 

SEC.  17.  That  in  all  prosecutions,  hearing  and  proceed- 
ings under  the  provisions  of  this  act,  whether  civil  or 
criminal,  no  person  shall  be  excused  from  the  attending 
and  testifying  or  from  producing  books,  papers,  con- 
tracts, agreements  and  documents  before  the  courts  of 
this  state,  or  in  obedience  to  the  subpoena  of  the  same,  on 
the  ground  or  for  the  reason  that  the  testimony  or  evi- 
dence, documentary  or  otherwise,  required  by  him  may 
tend  to  incriminate  him  or  subject  him  to  a  penalty  or 
forfeiture.  Any  person  who  shall  neglect  or  refuse  to 
make  returns,  attend  and  testify  or  answer  any  lawful 
requirement  hereinbefore  provided  for,  or  produce  books, 
papers,  contracts,  agreements  and  documents  if  in  his 
custody,  control  or  power  to  do  so,  in  obedience  to  the 
subpoenas  of  the  court,  or  lawful  requirements  of  the  at- 
torney-general, shall  be  deemed  guilty  of  a  misdemeanor 
and  upon  conviction  thereof  by  a  court  of  competent 


86  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

jurisdiction  shall  be  punished  by  a  fine  not  less  than  five 
hundred  dollars  ($500)  nor  more  than  five  thousand  dol- 
"  lars  ($5,000).  That  whoever  knowingly  swears  to  a  re-« 
turn  or  report  required  by  this  act  that  is  false  in  any 
material  particular,  or  knowingly  swears  to  an  answer  to 
any  of  the  requirements  of  this  act,  that  is  false,  in  any 
material  particular,  shall  be  deemed  guilty  of  perjury 
and  punished  as  provided  by  the  laws  of  this  state  in 
reference  to  perjury. 

Whoever  shall  knowingly  prepare,  or  cause  to  be  pre- 
pared a  report,  return  or  answer  required  by  this  act  that 
is  false,  as  aforesaid,  shall  be  guilty  of  subornation  of 
perjury  and  punished  as  provided  by  law. 

SEC.  18.  That  there  is  hereby  appropriated  out  of  any 
money  in  the  treasury  not  otherwise  appropriated  to  be 
expended  under  the  direction  of  the  governor  and  attor- 
ney-general of  this  state,  the  sum  of  one  thousand  dollars 
($1,000)  for  the  enforcement  of  the  provisions  of  this 
act  in  the  employment  of  special  counsel  and  agents  by 
the  governor  and  attorney-general  to  conduct  proceed- 
ings, suits  and  prosecutions  under  this  act,  in  the  courts 
of  this  state.  It  is  hereby  made  the  duty  of  the  attorney- 
general,  and  the  county  attorneys  of  the  state  under  di- 
rection of  the  attorney-general,  to  institute  and  prose- 
cute such  proceedings  as  may  be  necessary  to  carry  into 
effect  all  of  the  provisions  of  this  act ;  provided,  that  no 
person  shall  be  prosecuted  or  be  subjected  to  any  penalty 
or  forfeiture  for  or  on  account  of  any  transaction,  mat- 
ter or  thing  concerning  which  he  may  testify  or  produce 
evidence,  documentary  or  otherwise,  or  any  proceedings, 
suit  or  prosecution  under  this  act ;  provided,  further,  that 
no  person  testifying  shall  be  exempt  from  prosecution  or 
punishment  for  perjury  committed  in  so  testifying. 

Approved  March  10th,  1911.     (L.  1911,  c.  215,  p.  688.) 


ILLINOIS. 

STATUTES  (ACTS  1907). 

If  any  corporation  organized  under  the  laws  of  this  or 
any  other  state  or  country  f or ,  transacting  otf' conducting 
any  kind  of  business  in  this  state,  or  any  partnership  or 
individual  or  other  association  of  persons  whosoever, 
shall  create,  enter  into,  become  a  member  of  or  a  party 
to  any  pool,  trust,  agreement,  combination,  confedera- 
tion or  understanding  with  any  other  corporation,  part- 
nership, individual  or  any  other  person  or  association  of 
persons,  to  regulate  or  fix  the  price  of  any  article  of  mer- 
chandise or  commodity,  or  shall  enter  into,  become  a 
member  of  or  party  to  any  pool,  agreement,  contract, 
combination  or  confederation  to  fix  or  limit  the  amount  or 
quantity  of  any  article,  commodity  or  merchandise  to  be 
manufactured,  mined,  produced  or  sold  in  this  state,  such 
corpora tion,'part^ejt£hi,p,  or  individual  or  other  association 
of  persons  shall  be  deemed. and  adjudged  guilty  of  SL  con- 
spiracy to  defraud,  and  be  subject  to  indictment  and -pun- 
ishment as  provided  in  this  act ;  provided,  however,  that  in 
the  mining,  manufacture  or  production  of  articles  of  mer- 
chandise, the  cost  of  which  is  mainly  made  up  of  wages, 
it  shall  not  be  unlawful  for  persons,  firms  or  corpora- 
tiojis  doing  business  in  this  state  to  enter  into  joint  ar- 
rangements of  any  sort,  the  principal  object  or  effect  of 
which  is  to  maintain  or  increase  wages.  (Act  of  June  11, 
1891;  Laws  1891,  p.  206,  as  amended  to  1907,  Sec.  1.) 

It  shall  not  be  lawful  for  any  corporation  to  issue  or  to 
own  trust  certificates,  or  for  any  corporation,  agent,  offi- 
cer or  employees,  or  the  directors  or  stockholders  of  any 
corporation  to  enter  into -any  .combination,  contract  or 
agreement  with  any  person  or  persons,  corporations  or  cor- 
porations, or  with  any  stockholder  or  director  thereof,  the 
purpose  and  effect  of  which  combination,  contract  or 
agreement  shall  be  to  place  the  management  or  control 
of  such  combination  or  combinations,  or  the  manufac- 
tured product  thereof,  in  the  hands  of  any  trustee  or  trus- 
tees, with  the  intent  to  limit  or  fix  the  price  or  lessen 

87 


LAWS   ON   TRUSTS   AND  MONOPOLIES. 

the  production  and  sale  of  any  article  of  commerce,  use 
or  consumption,  or  to  prevent,  restrict  or  diminish  the 
manufacture  or  output  of  any  such  article.  (Act  supra, 
Sec.  2.) 

If  a  corporation  or  a  company,  firm  or  association,  shall 
be  found  guilty  of  a  violation  of  this  act,  it  shall  be  pun- 
ished by  a  fine  in  any  sum  not  less  than  five  hundred  dol- 
lars ($500)  nor  more  than  two  thousand  dollars  ($2,000) 
for  the  first  offense;  and  for  the  second  offense  not  less 
than  two  thousand  dollars  ($2,000)  nor  more  than  five 
thousand  dollars  ($5,000)  ;  and  for  the  third  offense  not 
less  than  five  thousand  dollars  ($5,000)  nor  more  than  ten 
thousand  dollars  ($10,000),  and  for  every  subsequent  of- 
fense and  conviction  thereof,  shall  be  liable  to  a  fine  of 
fifteen  thousand  dollars  ($15,000)  ;  provided,  that  in  all 
cases  under  this  act  either  party  shall  have  the  right  of 
trial  by  jury.  (Act  supra,  Sec.  3.) 

Any  president,  manager,  director  or  other  officer  or 
agent  or  receiver  of  any  corporation,  company,  firm  or 
association,  or  any  member  of  any  company,  firm  or  asso- 
ciation, or  any  individual  found  guilty  of  a  violation  of 
the  first  section  of  this  act,  may  be  punished  by  a  fine  of 
not  less  than  tAvo  hundred  dollars  ($200),  nor  to  exceed 
one  thousand  dollars  ($1,000),  or  be  punished  by  confine- 
ment in  the  county  jail  not  to  exceed  one  year,  or  both,  in 
the  discretion  of  the  court  before  which  such  conviction 
may  be  had.  (Act  supra,  Sec.  4.) 

Any  contract  or  agreement  in  violation  of  any  pro- 
vision of  the  preceding  sections  of  this  act,  shall  be  abso- 
lutely void.  (Act  supra,  Sec.  5.) 

Any  purchaser  of  any  article  or  commodity  from  any 
individual,  company  or  corporation  transacting  business 
contrary  to  any  provision  of  the  preceding  sections  of  this 
act,  shall  not  be  liable  for  the  price  or  payment  of  such 
article  or  commodity,  and  may  plead  this  act  as  a  defense 
to  any  suit  for  such  price  or  payment.  (Act  supra, 
Sec.  6.) 

The  fines  hereinbefore  provided  for  may  be  recovered 
in  an  action  of  debt,  in  the  name  of  the  people  of  the 
state  of  Illinois.  If,  upon  the  trial  of  any  cause  insti- 
tuted under  this  act  to  recover  the  penalties  as  provided 
for  in  section  3,  the  jury  shall  find  for  the  people,  and 
that  the  defendant  has  been  before  convicted  of  a  viola- 
tion of  the  provisions  of  this  act,  they  shall  return  such 
finding  with  their  verdict,  stating  the  number  of  times 


ILLINOIS. 

they  find  defendant  so  convicted,  and  shall  assess  and  re- 
turn with  their  verdict  the  amount  of  the  fine  to  be  im- 
posed upon  the  defandant  in  accordance  with  said  section 
3 ;  provided,  that  in  all  cases  under  the  provisions  of  this 
act,  a  preponderance  of  evidence  in  favor  of  the  people 
shall  be  sufficient  to  authorize  a  verdict  and  judgment  for 
the  people.  (Act  supra,  Sec.  7.) 

It  shall  be  the  duty  of  the  secretary  of  state,  on  or 
about  the  first  day  of  September  of  each  year,  to  address 
to  the  president,  secretary  or  treasurer  of  each  incorpo- 
rated company  doing  business  in  this  state,  whose  post- 
office  address  is  known  or  may  be  ascertained,  a  letter  of 
inquiry  as  to  whether  the  said  corporation  has  all  or  any 
part  of  its  business  or  interest  in  or  with  any  trust,  combi- 
nation or  association  of  persons  or  stockholders,  as  named 
in  the  preceding  provisions  of  this  act,  and  to  require  an 
answer,  under  oath,  of  the  president,  secretary  or  treas- 
urer, or  any  director  of  said  company.  A  form  of  affi- 
davit shall  be  enclosed  in  said  letter  or  inquiry,  as  fol- 
lows : 

AFFIDAVIT. 

State  of  Illinois,  County  of ,  ss. 

I, ,  do  solemnly  swear  that  I  am  the 

(president,  secretary,  treasurer  or  director) 

of  the  corporation  known  and  styled 

duly  incorporated  under  the  laws  of ,  on  the 

day  of ,  18 ,  and  now  transacting 

or  conducting  business  in  the  state  of  Illinois,  and  that 
I  am  duly  authorized  to  represent  said  corporation  in  the 
making  of  this  affidavit;  and  I  do  further  solemnly 

swear  that  the  said known  and  styled 

as  aforesaid,  has  not,  since  the day  of 

(naming  the  day  upon  which  this  act  takes  effect),  cre- 
ated, entered  into  or  become  a  member  of,  or  a  party  to, 

and  was  not,  on  the day  of nor  at  any 

clay  since  that  date,  and  is  not  now  a  member  of  or  a 
party  to,  any  pool,  trust,  agreement,  combination,  con- 
federation or  understanding  with  any  other  corporation, 
partnership,  individual,  or  any  other  person  or  associa- 
tion of  persons  to  regulate  or  fix  the  price  of  any  article 
of  merchandise  or  commodity;  and  that  it  has  not  en- 
tered into  or  become  a  member  of,  or  a  party  to,  any  pool, 
trust,  agreement,  contract,  combination  or  confederation 


90  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

to  fix  or  limit  the  amount  or  quantity  of  any  article; 
commodity  or  merchandise  to  be  manufactured,  mined, 
produced  or  sold  in  the  state ;  and  that  it  has  not  issued 
and  does  not  own  any  trust  certificates,  and  for  any  cor- 
poration, agent,  officer  or  employee  or  for  the  directors 
or  stockholders  of  any  corporation,  has  not  entered  into 
and  is  not  now  in  any  combination,  contract  or  agree- 
ment with  any  person  or  persons,  corporation  or  corpo- 
rations, or, -with  any  stockholder4  or  director  thereof  the 
purpose  and  effect  of  which  said  combination,  contract 
or  agreement  would  be  to  place  the  management  or  con- 
trol of  such  combination  or  combinations,  or  the  manu- 
factured product,  thereof,  in  the  hands  of  any  trustee  or 
trustees ;  writh  the  intent  to  limit  or  fix  the  price  or  lessen 
lihe  production  and  sales  of  any  articles  of  commerce,  use 
or  consumption,  or  to  prevent,  restrict  <3r  diminish  the 
manufacture  or  output  of  any  such  article.' 


(President,  Secretary,  Treasurer  or  Director.) 
Subscribed  and  sworn  to  before  me,  a 

within  and  for  the  county  of this day 

of ,  18___ 

(Seal.)  ___-__l____,,___ 

And  on  refusal  to  make  oath  in  answer  to  said  inquiry, 
or  on  failure  to  do  so  within  thirty  days  from  the  mail- 
ing thereof,  the  secretary  of  state  shall  certify  that  fact 
to  the  attorney-general,  whose  duty  it  shall  be  to  direct 
the  state's  attorney  of  the  county  wherein  such  corpora- 
tion or  corporations  are  located,  and  it  is  hereby  made 
the  duty  of  the  state's  attorney  Hinder  the  direction  of  the 
attorney-general,  at  the  earliest  practicable  moment,  in 
the  name  of  the  people  of  the  state  of  Illinois,' und  at  the 
relation  of  the  attorney-general  to  proceed  against  such 
corporation  for  the  recovery  of  a  penalty  of  fifty  dollars 
for  each  day  after-such  refusal  to  make  oath,  or  failure 
to  make  said  oath  -within  the  thirty  days  from  the  mail- 
ing of  said  notice;  or  the  attorney-general  may,  by  any 
proper  proceedings  in  a  'court  of  law  or  chancery,  pro- 
ceed, upon  such  failure  or  refusal,  to  forfeit  ."such  charter 
of  such  incorporated  company  or  association  incorpo- 
rated under  the  general  laws,  or  by  any  especial  law  of 
this  state,  and  to  revoke  the  rights  of  any  foreign  corpo- 
ration located  herein  to  (lo  business  in  this  state ;  pro- 


ILLINOIS.  91 

vided,  however,  that  before  any  such  suit  or  prosecution 
as  contemplated  by  this  act  shall  be  instituted  against  any 
person,  persons,  copartnerships  or  corporations  failing  to 
file  such  affidavits  within  said  thirty  days  from  the  mail- 
ing of  such  notice  from  the  secretary  of  state,  as  afore- 
said, it  shall  be  the  duty  of  the  state's  attorney  of  the 
county  where  such  person,  copartnership  or  corporation 
is  located,  to  give  such  person,  copartnership  or  corpo- 
ration ten  days'  notice  in  waiting  of  the  intention  to  in- 
stitute such  suit  or  proceeding;  and  provided  further, 
that  if  such  person,  copartnership  or  corporation  shall 
then  within  such  period  of  ten  days  make  and  file  such 
affidavit  in  the  office  of  the  secretary  of  state,  no  penalty 
shall  attach  and  no  suit  or  proceeding  shall  be  insti- 
tuted against  such  person,  copartnership  or  corporation. 
(Act  supra,  Sec.  7a,  as  amended  by  Act  of  May  25,  1907.) 
It  shall  be  the  duty  of  the  secretary  of  state,  at  any  time, 
upon  satisfactory  evidence  that  any  company  or  asso- 
ciation of  persons,  duly  incorporated  under  the  laws  of 
this  or  any  other  state,  doing  business  in  this  state,  has 
entered  into  any  trust,  combination  or  association  in  vio- 
lation of  the  preceding  sections  of  this  act,  to  demand 
that  it  shall  make  the  affidavit,  as  above  set  forth  in 
this  act,  as  to  the  conduct  of  its  business.  In  case  of  fail- 
ure of  compliance  on  the  part  of  the  corporation,  then 
the  same  procedure  shall  ensue  as  is  provided  in  section , 
7a  of  this  act ;  provided,  that  no  corporation,  firm,  asso- 
ciation or  individual  shall  be  subject  to  any  criminal, 
prosecution  by  reason  of  anything  truthfully  disclosed  by 
the  affidavit  required  by  this  act,  or  truthf  uly  disclosed  in, 
any  testimony  elicited  in  the  execution  thereof.  The  sec- 
retary of  state  is  hereby  authorized  and  required  to  charge 
and  collect  of  each  corporation  a  fee  of  one  dollar  for  re- 
ceiving and  filing  the  affidavit  herein  provided  for,  to  be 
accounted  for  as  other  fees  received  by  him.  To  enable  the 
secretary  of  state  to  discharge  the  additional  ,duties  de- 
volving upon  him  in  the  execution  of  this  act  there  is 
hereby  appropriated  out  of  any  funds  in  thp-istate  treas- 
ury not  otherwise  appropriated,  or  so  much  thereof  as 
may  be  necessary,  the  sum  of  six  thousand  dollars  per 
annum,  payable  to  the  secretary  of  state  on  his  order 
upon  proper  vouchers  as  required  by /law ;  provided,  that 
corporations  organized  under  tlie  building  loan  and 
homestead  association  laws  q|C'this  state  are  excluded 
from  the  provisions  of  this  act.  (Act  supra,  Sec.  7b.) 

fe 


92  LAWS   ON   TBUSTS   AND   MONOPOLIES. 

It  shall  be  the  duty  of  the  prosecuting  attorneys  in 
their  respective  jurisdictions,  and  the  attorney-general,  to 
enforce  the  foregoing  provisions  of  this  act,  and  any  pros- 
ecuting attorney  of  any  county,  securing  a  conviction 
under  the  provisions  of  this  act,  shall  be  entitled  to  such 
fee  or  salary  as  by  law  he  is  allowed  for  such  prosecution. 
When  there  is  a  conviction  under  this  act,  the  informer 
shall  be  entitled  to  one-fifth  of  the  fine  recovered,  which 
shall  be  paid  him  when  the  same  is  collected.  All  fines 
recovered  under  the  provisions  of  this  act  shall  be  paid 
into  the  county  treasury  of  the  county  in  which  the  suit 
is  tried,  by  the  person  collecting  the  same,  in  the  manner 
now  provided  by  law,  to  be  used  for  county  purposes. 
(Act  supra,  Sec.  8.) 

TRUSTS    AND    COMBINES     (ACT    1893). 

(Held  unconstitutional.     See  below.) 

AN  ACT  To  define  trusts  and  conspiracies  against  trade,  declar- 
ing contracts  in  violation  of  the  provisions  of  this  act  void,  and 
making  certain  acts  in  violation  thereof  misdemeanors,  and  pre- 
scribing the  punishment  therefor  and  matters  connected  there- 
with. 

SEC.  1.  Be  it  enacted,  by  the  People  of  the  State  of 
Illinois,  represented  in  General  Assembly,  That  a  trust 
is  a  combination  of  capital,  skill  or  acts  by  two  or  more 
persons,  firms,  corporations  or  associations  of  persons,  or 
of  two  or  more  of  them  for  either,  any  or  all  of  the  fol- 
lowing purposes:  First — To  create  or  carry  out  restric- 
tions in  trade.  Second — To  limit  or  reduce  the  produc- 
tion, or  increase  or  reduce  the  price  of  merchandise  or 
commodities.  Third — To  prevent  competition  in  manu- 
facture, making,  transportation,  sale  or  purchase  of  mer- 
chandise, produce  or  commodities.  Fourth — To  fix  at 
any  standard  or  figure,  whereby  its  price  to  the  public 
shall  be  in  any  manner  controlled  or  established,  upon 
any  article  or  commodity  of  merchandise,  produce  or 
manufacture  intended  for  sale,  use  or  consumption  in 
this  state ;  or  to  establish  any  pretended  agency  whereby 
the  sale  of  any  such  article  or  commodity  shall  be  covered 
up  and  made  to  appear  to  be  for  the  original  vendor,  for 
a  like  purpose  or  purposes,  and  to  enable  such  original 
vendor  or  manufacturer  to  control  the  wholesale  or  retail 
price  of  any  such  article  or  commodity  after  the  title  to 


ILLINOIS.  93 

such  article  or  commodity  shall  have  passed  from  such 
vendor  or  manufacturer.  Fifth — To  make  or  enter  into, 
or  examine  or  carry  out  any  contract,  obligation  or  agree- 
ment of  any  kind  or  description  by  which  they  shall  bind 
or  have  bound  themselves  not  to  sell,  dispose  of,  or  trans- 
port any  article  or  commodity,  or  article  of  trade,  use, 
merchandise,  commerce  or  consumption  below  a  common 
standard  figure,  or  card,  or  list  price,  or  by  which  they 
shall  agree  in  any  manner  to  keep  the  price  of  such 
article,  commodity  or  transportation  at  a  fixed  or  grad- 
uated figure,  or  by  which  they  shall  in  any  manner  estab- 
lish or  settle  the  price  of  any  article  or  commodity  or 
transportation  between  them  or  themselves  and  others  to 
preclude  a  free  and  unrestricted  competition  among 
themselves  or  others  in  the  sale  or  transportation  of  any 
such  article  or  commodity,  or  by  which  they  shall  agree 
to  pool,  combine  or  unite  any  interest  they  may  have  in 
connection  with  the  sale  or  transportation  of  any  such 
article  or  commodity  that  its  price  might  in  any  manner 
be  affected. 

SEC.  2.  That  a-ny  corporation  holding  a  charter  under 
the  laws  of  this  state  which  shall  violate  any  of  the  pro- 
visions of  this  act  shall  thereby  forfeit  its  charter  and 
franchise,  and  its  corporate  existence  shall  cease  and 
determine. 

SEC.  3.  For  a  violation  of  any  of  the  provisions  of  this 
act  by  any  corporation  mentioned  herein  it  shall  be  the 
duty  of  the  attorney-general  or  prosecuting  attorney, 
upon  his  own  motion,  to  institue  suit  or  quo  warranto 
proceedings  at  any  county  in  this  state  in  which  such 
corporation  exists,  does  business,  or  may  have  a  domicile, 
for  the  forfeiture  of  its  charter  rights  and  franchise,  and 
the  dissolution  of  its  corporate  existence. 

SEC.  4.  Every  foreign  corporation  violating  any  of  the 
provisions  of  this  act  is  hereby  denied  the  right  and  pro- 
hibited from  doing  any  business  within  this  state,  and  it 
shall  be  the  duty  of  the  attorney-general  to  enforce  this 
provision  by  injunction  or  other  proper  proceedings  in 
any  county  in  which  such  foreign  corporation  does  busi- 
ness, in  the  name  of  the  state  on  his  relation. 

SEC.  5.  Any  violation  of  either  or  all  of  the  provisions 
of  section  one  of  this  act  shall  be  and  is  hereby  declared 
to  be  a  conspiracy  against  trade,  and  a  misdemeanor ;  and 
any  person  who  may  be  or  may  become  engaged  in  any 


94  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

such  conspiracy  or  take  part  therein  or  aid  or  advise  in 
its  commission,  or  who  shall,  as  principal,  manager,  di- 
rector, agent,  servant,  or  employee,  or  in  any  other  ca- 
pacity knowingly  carry  out  any  of  the  stipulations,  pur- 
poses, prices,  rates,  orders  thereunder  or  in  pursuance 
thereof  shall  be  punished  by  fine  not  less  than  two  thou- 
sand dollars  nor  more  than  five  thousand  dollars. 

SEC.  6.  In  any  indictment  or  information  for  any  of- 
fense named  in  this  act  it  is  sufficient  to  state  the  purposes 
and  effects  of  the  trust  or  combination,  and  that  the  ac- 
cused was  a  member  of,  acted  with  or  in  pursuance  of  it, 
without  giving  its  name  or  description,  or  how  or  where 
it  was  created. 

SEC.  7.  In  prosecutions  under  this  act  it  shall  be  suffi- 
cient to  prove  that  a  trust  or  combination  as  defined 
herein  exists,  and  that  the  defendant  belonged  to  it  or 
acted  for  or  in  connection  with  it,  without  proving  all 
the  members  belonging  to  it,  or  proving  or  producing 
any  article  of  agrement  or  any  written  instrument  on 
which  it  may  have  been  based,  or  that  it  was  evidenced 
by  any  written  instrument  at  all. 

SEC.  8.  That  any  contract  or  agreement  in  violation  of 
the  provisions  of  this  act  shall  be  absolutely  void  and  not 
enforceable  either  in  lawT  or  equity. 

SEC.  9.  The  provisions  of  this  act  shall  not  apply  to 
agricultural  products  or  live  stock  while  in  the  hands  of 
the  producer  or  raiser. 

SEC.  10.  Any  purchaser  of  any  article  or  commodity, 
from  any  person,  firm,  corporation  or  association  of  per- 
sons, or  of  two  or  more  of  them,  transacting  business  con- 
trary to  any  provision  of  the  preceding  sections  of  this 
act  shall  not  be  liable  for  the  price  or  payment  of  such 
article  or  commodity  and  may  plead  this  act  as  a  de- 
fense to  any  suit  for  such  price  or  payment. 

Approved  June  20,  1893. 

ANTITRUST  LAAV  HELD  VOID. 
UNION  SEWER  PIPE  COMPANY  V.  CONNELLY. 

U.  S.  CIRCUIT  COURT, 
NORTHERN  DISTRICT  OF  ILLINOIS, 

January  29,  1900. 

STATEMENT. 

Plaintiff  brings  suit  on  promissory  notes  given  by 
defendant  for  balance  due  on  purchases  of  sewer  pipe. 


ILLINOIS.  95 

Defendant  gives,  notices  of  three  special  defenses,  all 
based  upon  the  theory  that  plaintiff  was  a  combination  in 
restriction  of  trade,  contrary — (1)  to  the  common  law; 
(2)  to  the  so-called  Sherman  Act;  (3)  to  the  statute  of 
Illinois  taking  effect  July  1,  1893, 

OPINION. 

As  to  the  first  special  defense:  "  The  fact  that  one 
party  to  a  contract  is  engaged  in  illegal  acts  will  not,  at 
common  law,  avail  the  other  party  as  a  defense  to  the 
enforcement  of  a  contract  in  itself  legal." 

As  to  the  second  special  defense:  The  so-called  Sher- 
man :Act  does  not  affect  contracts  which  "merely  indi- 
rectly, remotely,  incidentally,  or  collaterally  regulate  to 
a  greater  or  lesser  degree  interstate  commerce  among  the 
States." 

As  to  the  third  special  defense:  The  statute  of  July 
1.  1893,  provides,  in  section  9,  that  "  the  provisions  of  this 
act  shall  not  apply  to  agricultural  products  or  live  stock 
while  in  the  hands  of  the  producer  Or  raiser." 

The  statute^  by  virtue  of  this  clause,  contains  both 
class  and  special  legislation,  and  is  in  contravention  of 
the  fourteenth  amendment  of  the  'Federal  Constitution, 
which  forbids  any  State  to  deprive  any  person  of  the 
equal  protection  of  the  laws,  and  also  in  contravention  of 
section  22  of  article  4  of  the  constitution  of  Illinois, 
which  says :  "  In  all  other  cases  where  a  general  law  can 
be  made  applicable  no  special  law  shall  be  enacted." 

It  is  suggested  that  the  said  ninth  section  may  be 
declared  void  without  affecting  the  validity  of  the  re- 
maining clauses  of  the  act.  By  such  a  decision  the 
courts  would  make  the  act  binding  upon  those  classes  of 
persons  which  the  legislature  especially  exempted  from 
its  provisions.  This  would  be  judicial  legislation  of  the 
most  flagrant  character.  Clause  9  taints  the  whole  act 
and  renders  it  all  void. 

Verdict  must  be  given  for  the  plaintiff. 

COURT  PECISIONS. 

Ford  et  al.  v.  Chicago  Milk  Shippers'  Association,  155 
111.,  166. 

The  Distilling  and  Cattle  Feeding  Co.  v.  The  People 
ex  rel.  M.  T.  Moloney,  Attorney-General,  156  111,  488. 


96  DECISIONS   ON   TRUSTS  AND  MONOPOLIES. 

Levin  v.  Chicago  Gas  Light  and  Coke  Co.  et  al.,  64  111. 
App.,  393. 

The  People  ex  rel.  William  W.  Mcllhany  v.  The  Chi- 
cago Live  Stock  Exchange,  170  111.,  556. 

Harding  et  al.  v.  American  Glucose  Company  et  al.. 

55  N.  E.  Rep.,  577. 

People  v.  Chicago  Gas  Trust  Co.,  130  111.  268,  22  N.  E. 
798,  8  L.  R.  A.  497, 17  Am.  St.  Rep.,  319. 

Dunbar  v.  Am.  Tel.  &  Tel.  Co.,  238  111.,  456;  87  N.  E. 
521. 

Distilling  Company  v.  People,  156  111.  448;  41  N.  E. 
188,  47  Am.  St.  Rep.  200. 

Harding  v.  American  Glucose  Co.  182  111.  551,  55  N.  E, 
577,  64  L.  R.  A.  738. 

People  v.  Chicago  Live  Stock  Exchange,  170  111.  556. 
39  L.  R.  A.  373. 

More  v.  Bennett,  140  111.  69,  29  N.  E.  888. 

Gustafson  v.  Swanson,  131  111.  App.  585. 

Wiley  &  Drake  v.  National  Wall  Paper  Co.,  70  111. 
App.  543. 

People  v.  Butler  St.  Foundry  &  Iron  Co.  201  111.  236. 
66  N.  E.  349. 

Chicago  W.  &  V.  Coal  Co.  v.  People,  214  111.  421,  73 
N.  E.  770. 

Lanyon  v.  Garden  City  Sand  Co.,  223  111.  616,  79  N.  E. 
313. 

Inter-Ocean  Pub.  Co.  v.  Associated  Press,  184  111.  438, 

56  N.  E.  822,  48  L.  R.  A.  568,  75  Am.  St.  Rep.  568. 

COMMON-LAW  CASES. 

Craft  et  al.  v.  McConoughy,  79  111.,  346. 

The  Chicago  Gas  Light  and  Coke  Co.  v.  The  People's 
Gas  Light  and  Coke  Co.,  121  111.,  530. 

The  People  ex  rel.  Francis  B.  Peabody  v.  The  Chicago 
Gas  Trust  Co.,  130  111.,  268. 


INDIANA. 

STATUTES. 

SECS.  3878,  3879.  All  arrangements,  contracts,  agree- 
ments, trusts  or  combinations  made  with  a  view  to  lessen 
free  competition  in  transportation  or  sale  of  articles  im- 
ported or  domestic  are  void  to  reduce  or  control  the  price 
of  such  articles.  The  act  provides  for  forfeiture  of  the 
franchise  of  any  corporation  violating  these  provisions, 
and  requires  the  attorney-general  to  proceed  against  cor- 
porations violating  the  provisions  of  the  act  and  enforce 
the  penalties  prescribed. 

SEC.  3884.  All  agreements  to  prevent,  induce  or  pro- 
cure any  wholesale  or  retail  dealer  or  manufacturer  from 
selling  to  any  dealer  or  mechanic  or  artisan,  or  any 
wholesaler,  retailer  or  manufacturer  who  shall  refuse  to 
sell  to  such  persons  for  the  reason  that  such  person  is 
not  a  member  of  a  combination,  etc.,  shall  be  guilty  of 
conspiracy  in  restraint  of  trade,  and  such  agreements 
are  void.  Penalty,  $50  to  $200,  to  which  may  be  added 
imprisonment  in  county  jail  for  any  period  not  exceed- 
ing one  year. 

SEC.  3885.  All  agreements  with  object  of  refusing  to 
furnish  any  article  required  in  manufacture  of  any  ar- 
ticle of  merchandise  when  the  party  or  corporation  can 
furnish  same,  or  by  charging  more  than  the  regular  and 
ordinary  price,  or  refusing  to  do  any  act  that  would  cause 
such  party  to  cease  to  manufacture  such  article  or  hinder 
such  person  or  corporation  from  so  doing,  shall  be  void, 
with  penalty  of  forfeiture  of  franchise.  Every  foreign 
corporation  so  guilty  is  denied  right  to  do  business  in 
state. 

ANTI-TRUST  LAW  OF   1907    (R.   S..    1908,  SECS.    3866-92). 

The  following  act  was  passed  by  the  legislature  of 
1907: 

ANTI-TRUST — RESTRAINT    OF    TRADE    ILLEGAL PENALTY. 

SECTION  1.  That  every  scheme,  design,  understanding, 
contract,  combination  in  the  form  of  a  trust  or  otherwise , 
16491—13 7 


98  LAWS   ON   TKUSTS   AND   MONOPOLIES. 

or  conspiracy  in  restraint  of  trade  or  commerce,  or  to  create 
or  carry  out  restrictions  in  trade  or  commerce,  or  to  deny 
or  refuse  to  any  person  or  persons  full  participation,  on 
equal  terms  with  others,  in  any  telegraphic  service  trans- 
mitting matter  prepared  or  intended  for  public  use,  or  to 
limit  or  reduce  the  production,  or  increase  or  reduce  the 
price  of  merchandise  or  any  commodity,  natural  or  arti- 
ficial, or  to  prevent  competition  in  manufacturing,  within 
or  without  this  state,  is  hereby  declared  to  be  illegal,  but 
none  of  the  provisions  of  this  act  shall  be  construed  to 
apply  to  (or)  repeal,  modify  or  limit,  or  make  unlawful 
any  powers,  rights  or  privileges  now  existing  or  con- 
ferred by  law  upon  any  person,  copartnership,  associa- 
tion or  corporation.  Every  person  who  shall  make  any 
such  contract  or  engage  in  any  such  combination  or  con- 
spiracy, or  enter  into  any  such  scheme,  design  or  under- 
standing, or  do  within  this  state  any  act  in  furtherance 
of  any  such  contract,  combination,  conspiracy,  scheme, 
design  or  understanding  entered  into  without  this  state, 
shall  be  deemed  guilty  of  a  misdemeanor,  and  on  convic- 
tion thereof  shall  be  fined  in  any  sum  not  exceeding  five 
thousand  dollars,  to  which  may  be  added  imprisonment 
in  the  county  jail  or  workhouse  for  a  term  not  exceeding 
one  year,  in  the  discretion  of  the  court  or  jury  trying 
the  cause;  provided,  however,  that  it  shall  be  a  good 
defense  to  any  action  growing  out  of  any  violation  of  the 
provisions  of  this  act  or  any  other  act  or  common  law 
relating  to  the  subject  matter  of  this  act  if  the  defendant 
shall  plead  and  by  a  fair  preponderance  of  the  evidence 
prove  that  such  violation  is  not  in  restraint  of  trade  or 
commerce  or  does  not  restrict  trade  or  commerce  or  limit 
or  reduce  the  production  or  increase  or  reduce  the  price 
of  merchandise  or  any  commodity  natural  or  artificial  or 
prevent  competition  in  manufacturing. 

MONOPOLY — -PE:N  ALTY. 

SEC.  2.  Every  person  who  shall  monopolize  or  attempt 
to  monopolize  or  combine  or  conspire  with  any  other  per- 
son or  persons  to  monopolize  any  part  of  the  trade  or 
commerce  within- .this  state,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  on  conviction  thereof  shall  be  fined  in 
any  sum  not  exceeding  five  thousand  dollars,  to  which 
may  be  added  imprisonment  in  the  county  jail  or  work- 


IXDIAXA.  99 

house  for  a  term  not  exceeding  one  year,  in  the  discretion 
of  the  court  or  jury  trying  the  cause. 

SCHEMES    TO    RESTRICT    COMPETITION PENALTY. 

SEC.  3.  Any  and  all  schemes,  designs,  understandings, 
plans,  arrangements,  contracts,  agreements  or  combina- 
tions to  limit,  restrain,  retard,  impede  or  restrict  bidding 
for  the  letting  of  any  contract  for  private  or  public  work, 
directly  or  indirectly,  or  to  in  any  manner  combine  or 
conspire  to  stifle  or  restrict  free  competition  for  the  let- 
ting of  any  contract  for  private  or  public  work,  are  here- 
by declared  illegal,  and  any  person  who  shall  directly 
or  indirectly  engage  in  any  scheme,  design,  understand- 
ing, plan,  arrangement,  contract,  agreement  or  combina- 
tion to  limit,  restrain,  retard,  impede  or  restrict  bidding 
for  the  letting  of  any  contract  for  private  or  public  work, 
or  in  any  manner  combine  or  conspire  to  stifle  or  restrict 
free  competition  for  the  letting  of  any  contract  for  pri- 
vate or  public  Avork,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  upon  conviction  shall  be  fined  in  any  sum 
not  exceeding  five  thousand  dollars,  to  which  may  be 
added  imprisonment  in  the  county  jail  or  workhouse  for 
a  term  of  not  more  than  one  year,  in  the  discretion  of  the 
court  or  jury  trying  the  cause. 

COLLUSION    OR    FRAUD WHEN    PRINCIPAL    NOT    LIABLE. 

SEC.  4.  If  there  shall  be  collusion  or  fraud  of  any  kind 
or  character  among  the  bidders  at  the  letting  of  any  con- 
tract or  work  as  provided  in  section  3  of  this  act  then  the 
principal  who  lets  the  contract  or  work,  or  for  whom 
the  contract  was  let,  shall  not  be  liable  for  such  letting 
or  on  account  of  said  contract,  or  work,  or  any  part 
thereof,  to  the  successful  bidder  to  whom  the  contract  or 
work  was  let,  his  successors  or  assigns,  if  such  successful 
bidder  be  a  party,  directly  or  indirectly,  to  such  collu- 
sion or  fraud  on  such  contract  or  letting,  or  for  any  work, 
materials  furnished  or  thing  done  in  discharge  thereof 
or  with  reference  thereto,  and  if,  before  notice  of  such 
collusion  or  fraud,  payment  or  partial  payment  thereon 
or  therefor  shall  have  been  made,  such  principal  may 
at  any  time  within  five  years  from  the  date  of  the  last 
payment  made  thereon  or  therefor  in  an  appropriate 
action  in  any  court  of  competent  jurisdiction  in  this  state 


100  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

recover  to  the  full  amount  of  such  payment  or  payments 
with  interest  to  date  of  judgment  thereon  and  attorney's 
fees  against  such  successful  bidder,  and  such  recovery 
shall  not  be  a  bar  to  any  action,  either  civil  or  criminal, 
brought  against  such  bidder  on  account  of  any  violation 
of  this  act  on  behalf  of  the  state  by  the  attorney-general, 
a  prosecuting  attorney  or  otherwise. 

ATTORNEY-GENERAL PROSECUTORS DUTIES. 

SEC.  5.  It  shall  be  the  duty  of  the  attorney-general  and 
of  the  prosecuting  attorney  of  each  judicial  circuit  to  in- 
stitute appropriate  proceedings  to  prevent  and  restrain 
violations  of  the  provisions  of  this  act  or  any  other  act 
or  the  common  law  relating  to  the  subject  manner  of  this 
act.  All  such  proceedings  shall  be  in  the  name  of  the 
state  of  Indiana  upon  relation  of  the  proper  party.  The 
attorney-general  may  file  such  proceedings,  either  in 
term  time  or  in  vacation,  upon  his  own  relation,  or  that 
of  any  private  person,  in  any  circuit  or  superior  court  of 
the  state,  without  applying  to  such  court  for  leave,  when 
he  shall  deem  it  his  duty  so  to  do.  Such  proceedings 
shall  be  by  information  filed  by  any  prosecuting  attorney 
in  a  circuit  or  superior  court  of  the  proper  county  upon 
his  own  relation  whenever  he  shall  deem  it  his  duty  so  to 
-  do,  or  shall  be  directed  by  the  court  or  governor  or  attor- 
ney-general, and  an  information  may  be  filed  by  any 
taxpayer  on  his  own  relation.  If  judgment  or  decree  be 
rendered  any  domestic  corporation  or  against  any  per- 
son claiming  to  be  a  corporation,  the  court  may  cause  the 
costs  to  be  collected  by  execution  against  tne  corporation 
or  against  the  person  claiming  to  be  a  corporation,  or  by 
attachment  against  any  or  all  of  the  directors  or  officers 
of  the  corporation,  and  may  restrain  the  corporation  or 
any  director,  agent,  employee  or  stockholder  and  appoint 
a  receiver  for  its  property  and  effects,  and  take  an  ac- 
counting and  make  distribution  of  its  assets  among  its 
creditors,  and  exercise  any  other  power  or  authority  nec- 
essary and  proper  for  carrying  out  the  provisions  of  this 
act.  If  judgment  or  decree  be  rendered  against  any  cor 
poration  incorporated  under  the  laws  of  the  United 
States,  or  of  any  district  or  territory  thereof,  or  of  any 
state  other  than  this  state,  or  of  any  foreign  country, 
the  court  may  cause  the  costs  to  be  collected  as  hereto- 


INDIANA.  101 

fore  provided,  and  may  render  judgment  and  decrease?; 
ouster  perpetually,  excluding  such  corporation  from  the 
privilege  of  transacting  business  in  the  state  of  "-Indiana, 
and  forfeiting  to  the  school  fund  any  or  all  property  of 
such  corporation  within  the  state  and  shall  exercise  such 
power  and  authority  with  regard  to  the  property  of  such 
corporation .  as  may  be  exercised  with  regard  to  that  of 
domestic  corporations. 

INTERROGATORIES  BY  PLAINTIFF EXAMINATIONS. 

SEC.  6.  In  all  proceedings  instituted  under  and  pur- 
suant to  the  foregoing  section  the  plaintiff  may  propound 
interrogatories  to  the  defendant  or  defandants  to  be  an- 
swered by  such  defendant  or  defendants  under  oath,  as 
is  now  provided  by  law  in  civil  actions,  and  if  any  de- 
fendant to  whom  interrogatories  be  propounded  as  afore- 
said be  a  corporation,  then  such  interrogatories  shall  be 
answered  by  the  highest  officer  of  such  corporation,  or 
by  any  other  officer,  agent  or  employee  of  such  corpora- 
tion designated  by  the  plaintiff.  The  plaintiff  in  any 
such  action  shall  be  entitled  upon  motion  to  an  order  for 
an  examination  under  oath  before  trial  of  any  defendant, 
or  all  the  defendants  in  such  action,  and  if  any  defendant 
in  such  action  be  a  corporation,  then  of  any  officer,  agent 
or  employee  of  any  such  defendant  corporation,  concern- 
ing any  or  all  of  the  facts  alleged  in  the  information  or 
other  pleadings  in  such  cause,  the  said  defendant  shall  be 
given  five  days'  notice  by  the  plaintiff  of  the  time  and 
place  of  the  taking  of  said  examination,  but  such  officer, 
agent  or  employee  shall  not  be  compelled  to  attend  such 
examination  except  in  the  county  where  he  resides  or 
where  the  principal  office  or  place  of  business  of  such 
corporation  be  situate  in  this  state.  If  such  defendant 
corporation  be  incorporated  under  the  laws  of  the  United 
States,  or  of  any  district  or  territory  thereof,  or  of  any 
state  other  than  the  state  of  Indiana,  or  of  any  foreign 
country,  and  the  officer,  agent  or  employee  to  be  examined 
be  without  the  jurisdiction  of  this  state,  then  such  de- 
fendant shall  produce  the  officer,  agent  or  employee,  to  be 
examined  as  aforesaid  at  some  place  in  the  city  or  town 
where  the  principal  office  or  place  of  business  of  such  de- 
fendant be  situate,  upon  five  days'  notice  being  served 
upon  the  attorneys  of  such  defendant  corporation,  of  the 


102  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

time,  .and  place  fixed  for  the  examination  of  such  officer, 
agent  or.  employee.  In  any  examination  of  any  defend- 
ant, 'or  of  any  officer,  agent  or  employee  of  any  defendant 
corporation,  such  defendant  officer,  agent  or  employee 
may  be  compelled  upon  notice  to  produce  for  inspection 
by  the  plaintiff,  and  to  testify  concerning  the  same,  or 
for  use  in  evidence  upon  the  trial,  or  both,  all  books,  pa- 
pers, documents  or  writings  pertaining,  or  in  anywise 
relating,  to  the  facts,  or  any  of  them,  stated  in  the  infor- 
mation or  other  pleadings  filed  in  the  cause.  In  such 
notice  to  produce  for  inspection  and  testimony  or  for 
trial,  or  both,  it  shall  only  be  necessary  to  notify  the  de- 
fendant or  the  attorney  or  attorneys  of  the  defendant  to 
produce  at  the  time  and  place  fixed  in  the  notice,  all 
books,  papers,  documents  or  writings  pertaining  or  in 
anywise  relating  to  the  facts  stated  in  the  information 
or  other  pleadings  filed,  and  it  shall  not  be  necessary  to 
state  in  such  notice  the  particular  books,  papers,  docu- 
ments or  writings  to  be  produced  at  such  time  and  place. 
Such  examinations  shall  be  taken  before  an  officer  author- 
ized to  take  depositions  and  may  be  continued  from  day 
to  day.  Upon  the  failure  or  refusal  of  any  defendant 
to  comply  with  any  order  made  as  aforesaid  to  answer 
interrogatories,  or  for  the  examination  of  the  defendant, 
the  officer,  agent  or  employee  of  any  defendant  corpora- 
tion or  upon  the  failure  or  refusal  of  any  defendant  cor- 
poration to  produce  any  officer,  agent  or  employee  for  ex- 
amination when  notified  as  aforesaid,  or  upon  the  failure 
or  refusal  of  any  defendant  to  produce  books,  papers, 
documents  and  writings  when  notified  as  aforesaid,  then 
all  pleadings  of  such  defendant  so  failing  to  comply  with 
such  order  or  notice  shall  be  stricken  from  the  files  upon 
motion  supported  by  affidavit,  and  the  allegations  of  the 
information  as  to  such  defendant  in  default  shall  be  taken 
as  confessed  and  judgment  and  decree  shall  be  entered 
accordingly. 

INJURED     PERSON     MAY     SUE DAMAGES PENALTY. 

SEC.  7.  Any  person  who  shall  be  injured  in  his  busi- 
ness or  property,  by  any  person  or  corporation  by  reason 
of  the  doing  by  any  person  or  persons,  of  anything  for- 
bidden or  declared  to  be  unlawful  by  this  act,  may  sue 
therefor  in  the  circuit  or  superior  court  of  any  county  in 
which  the  defendant  or  defendants,  or  any  of  them,  re- 


INDIANA.  103 

side  or  are  found  without  respect  to  the  amount  in  contro- 
versy, and  shall  recover  a  penalty  of  threefold  the  dam- 
ages which  may  be  sustained,  together  with  the  costs  of 
suit,  including  a  reasonable  attorney's  fee. 

IMPORTANCE    OF    CASE CERTIFICATE. 

SEC.  8.  In  any  proceeding  under  this  act  the  attorney- 
general  or  prosecuting  attorney  may  file  with  the  clerk  of 
the  court  a  certificate  that  in  his  opinion  the  case  is  of  gen- 
eral importance,  a  copy  of  which  shall  be  immediately 
furnished  by  said  clerk  to  the  judge  or  to  each  of  the 
judges  of  the  court  wherein  the  proceedings  may  be  pend- 
ing, and  the  court  shall  thereupon  make  the  proper  or- 
ders in  the  premises. 

COSTS — HOW  PAID APPROPRIATION. 

SEC.  9.  Whenever  an  information  is  filed  by  the  attor- 
ney-general or  by  any  prosecuting  attorney,  such  officer 
shall  not  be  liable  for  costs ;  but  when  it  is  filed  upon  the 
relation  of  a  private  person,  he  shall  be  liable  for  costs 
unless  the  same  are  adjudged  against  the  defendant.  In 
all  proceedings  instituted  under  the  provisions  of  this  act 
by  the  attorney-general  or  by  the  prosecuting  attorney 
on  the  order  and  direction  of  the  court,  attorney-general 
or  the  governor,  all  necessary  cost  and  expenses  of  the 
prosecution  shall  be  paid  out  of  moneys  in  the  state  treas- 
ury not  otherwise  appropriated,  if  such  costs  cannot  be 
collected  from  the  defendant  or  defendants,  in  case  judg- 
ment be  rendered  against  such  defendant  or  defendants, 
and  it  shall  be  the  duty  of  the  auditor  of  state,  upon  re- 
ceipt from  the  attorney-general  of  a  statement  of  the 
costs  and  expenses  of  any  such  prosecution,  to  draw  his 
warrant  upon  the  treasurer  of  state  for  the  amount  so  certi- 
fied; provided,  however,  that  the  attorney-general  shall 
not  involve  the  state  in  any  extraordinary  expense  for 
experts  or  other  assistants,  without  first  obtaining  the 
consent  of  the  governor,  and  twenty  thousand  dollars  is 

&  »/ 

hereby  appropriated  from  any  funds  of  the  state  not 
otherwise  appropriated  to  defray  the  expenses  of  such 
prosecutions  by  the  attorney-general  for  the  next  ensuing 
period  of  two  years  after  the  passage  of  this  act,  and 
twenty  thousand  dollars  biennially  thereafter  for  the 
same  purposes.  Such  prosecuting  attorney  shall  also 


104  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

be  allowed  by  the  court  trying  such  cause  reasonable  com- 
pensation for  his  services,  and  such  allowances  shall  be 
paid  as  part  of  the  costs  and  expenses  of  such  prosecution. 

PERSON   OR  PERSONS  DEFINED. 

SEC.  10.  The  word  "  person  "  or  "  persons,"  whenever 
used  in  this  act,  shall  be  deemed  to  include  corporations 
and  associations,  joint  stock  companies,  partnerships, 
limited  or  otherwise,  existing  under  or  authorized  by  the 
laws  of  the  state  of  Indiana,  or  of  the  United  States,  or 
of  any  state,  territory  or  district  of  the  United  States, 
or  of  any  foreign  country. 

IMMUNITY  OF  WITNESSES. 

SEC.  11.  Any  person  or  officer,  agent  or  employee  of  a 
corporation  may  be  examined  as  a  witness  or  a  party,  as 
in  other  cases,  in  any  civil  action  instituted  under  the 
provisions  of  this  act,  and  required  to  disclose  all  the 
facts  relevant  to  the  case  within  his  knowledge,  as  before 
provided,  but  the  testimony  of  such  witness  or  party  or 
any  answer  to  any  question  propounded  by  him  in  such 
examination  shall  not  be  used  against  such  witness  or 
party  in  any  criminal  prosecution;  provided,  however, 
that  such  exemption  shall  be  personal  to  such  witness, 
and  shall  not  exempt  or  render  immune  the  corporation 
of  which  witness  shall  be  an  officer,  agent  or  employee, 
and  such  corporation  shall  be  liable  for  any  violation  of 
this  act  as  if  such  officer,  agent  or  employee  had  not  so 
testified. 

ACT  CUMULATIVE. 

SEC.  12.  The  provisions  of  this  act  shall  be  held  cumu- 
lative of,  or  supplemental  to,  each  other,  and  of  all  other 
laws  in  any  way  affecting  them,  or  any  matter  which  in  any 
manner  is  the  subject  of  this  act  in  this  state,  and  cumu- 
lative of  and  supplemental  to  the  common  law  of  this 
state  relative  thereto,  or  to  any  thereof. 

COURT  DECISIONS. 

Sterling  Remedy  Co.  v.  Wyckoff,  S.  &  B.  154  Ind.  437. 
56  N.  E.  911. 

Knight  &  Jillson  Co.  v.  Miller,  172  Ind.,  27. 

Chicago,  etc.,  R.  R.  Co.  v.  Southern  Indiana  Ry.  Co., 
38  Ind.  App.,  234. 

Over  v.  Byram  Foundry  Co.,  37  Ind.  App.,  452. 


IOWA. 

STATUTES. 

SEC.  5060.  Any  corporation  organized  under  the  laws 
of  this  or  any  other  state  or  country  for  transacting  or 
conducting  any  kind  of  business  in  this  state,  or  any 
partnership,  association  or  individual,  creating,  enter- 
ing into  or  becoming  a  member  of  or  a  party  to  any 
pool,  trust,  agreement,  contract,  combination,  confedera- 
tion or  understanding  with  any  other  corporation,  part- 
nership, association  or  individual,  to  regulate  or  fix  the 
price  of  any  article  of  merchandise  or  commodity,  or  to 
fix  or  limit  the  amount  of  quantity  of  any  article,  com- 
modity or  merchandise  to  be  manufactured,  mined,  pro- 
duced or  sold  in  this  state,  shall  be  guilty  of  a  conspiracy. 

SEC.  5061.  No  corporation  shall  issue  or  own  trust 
certificates,  and  no  corporation,  nor  any  agent,  officer, 
employee,  director  or  stockholder  of  any  corporation, 
shall  enter  into  any  combination,  contract  or  agreement 
with  any  person  or  corporation,  or  with  any  stockholder 
or  director  thereof,  for  the  purpose  of  placing  the  man- 
agement or  control  of  such  combination  or  combinations, 
or  the  manufactured  product  thereof,  in  the  hands  of  any 
trustee  or  trustees,  with  intent  to  limit  or  fix  the  price 
or  lessen  the  production  or  sale  of  any  article  of  com- 
merce, use  or  consumption,  or  to  prevent,  restrict  or 
diminish  the  manufacture  or  output  of  any  such  article. 

SEC.  5062.  Any  corporation,  company,  firm,  or  asso- 
ciation violating  any  of  the  provisions  of  the  two  pre- 
ceding sections  shall  be  fined  not  less  than  $500  nor 
more  than  $5,000;  and  any  president,  manager,  director, 
officer,  agent  or  receiver  of  any  corporation,  company, 
firm  or  association,  or  any  member  of  any  corporation, 
company,  firm  or  association,  or  any  individual,  found 
guilty  of  a  violation  thereof,  shall  be  fined  not  less  than 
five  hundred  nor  more  than  five  thousand  dollars,  or  be 
imprisoned  in  the  county  jail  not  to  exceed  one  year  or 
both. 

106 


100  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

SEC.  5063.  All  contracts  or  agreements  in  violation  of 
any  provisions  of  the  three  preceding  sections  shall  be 
void. 

SEC.  5064.  Any  purchaser  of  any  article  or  commodity 
from  any  individual,  company  or  corporation  transacting 
business  contrary  to  any  provisions  of  the  four  preceding 
sections  shall  not  be  liable  for  the  price  or  payment 
thereof,  and  may  plead  such  provisions  as  a  defense  to 
any  action  for  such  price  or  payment. 

SEC.  5065.  Any  corporation  created  or  organized  by  or 
under  the  law  of  this  state,  which  shall  violate  any  pro- 
vision of  the  five  preceding  sections,  shall  thereby  forfeit 
its  corporate  right  and  franchise,  as  provided  in  the  next 
section. 

SEC.  5066.  The  secretary  of  state,  upon  satisfactory 
evidence  that  any  company  or  association  of  persons  in- 
corporated under  the  laws  of  this  state  have  entered  into 
any  trust,  combination  or  association  in  violation  of  the 
provisions  of  the  six  preceding  sections,  shall  give  notice 
to  such  corporation  that,  unless  it  withdraws  from  and 
severs  all  business  connection  with  said  trust,  combina- 
tion or  association,  its  articles  of  incorporation  will  be 
revoked  at  the  expiration  of  thirty  days  from  date  of 
such  notice. 

SEC.  5067.  County  attorneys,  in  their  counties,  and  the 
attorney-general  shall  enforce  the  provisions  of  a  public 
nature  in  the  seven  preceding  sections,  and  any  county 
attorney  or  the  attorney-general  securing  a  conviction 
under  the  provisions  thereof  shall  be  entitled,  in  addition 
to  such  fee  or  salary  as  by  law  he  is  allowed  for  such 
prosecution,  to  one-fifth  of  the  fine  recovered.  When  the 
attorney-general  and  county  attorney  act  in  conjunction 
in  the  prosecution  of  any  action  under  such  provisions, 
they  shall  be  entitled  to  one-fourth  of  the  fine  recovered, 
which  they  shall  divide  equally  between  them,  where 
there  is  no  agreement  to  the  contrary.  It  shall  be  the 
duty  of  the  grand  jury  to  inquire  into  and  ascertain  if 
there  exists  any  pool,  trust  or  combination  within  their 
respective  counties. 

That  it  shall  be  unlawful  for  any  person,  company, 
partnership,  association  or  corporation  owning  or  oper- 
ating any  business  of  buying,  selling,  handling,  consign- 
ing or  transporting  any  commodity  or  any  article  of  com- 
merce, to  enter  into  any  agreement,  contract  or  combina- 


IOWA.  ]  07 

tion  with  any  other  dealer  or  dealers,  partnership,  com 
pany,  corporation  or  association  of  dealers,  whether 
within  or  without  the  State,  engaged  in  like  business,  for 
the  fixing  of  the  price  or  prices  at  which  any  commodity 
or  any  article  of  commerce  should  be  sold  by  different 
dealers  or  sellers;  or  to  divide  between  said  dealers  the 
aggregate  or  net  proceeds  of  the  earnings  of  such  dealers 
and  sellers,  or  any  portion  thereof ;  or  to  form,  enter  into, 
maintain,  or  contribute  money  or  anything  of  value  to 
any  trust,  pool,  combination  or  association  of  persons 
of  whatsoever  character  or  name,  which  has  for  any  of 
its  objects  the  prevention  of  full  and  free  competition 
among  buyers,  sellers  or  dealers  in  any  commodity  or 
any  article  of  commerce ;  or  to  do  or  permit  it  to  be  done 
by  his  or  their  authority  any  act  or  thing  whereby  the 
free  action  of  competition  in  the  buying  or  selling  of  any 
commodity  or  any  article  of  commerce  is  restrained  or 
prevented.  (33  G.  A.,  Sec.  1.) 

That  in  case  any  person,  company,  partnership,  cor- 
poration or  association,  trust,  pool  or  combination  of 
whatsoever  name  shall  do,  cause  to  be  done,  or  permit  to 
be  done,  any  act.  matter  or  thing  in  this  act  prohibited 
or  declared  to  be  unlawful,  such  person,  partnership, 
company,  association,  corporation,  trust,  pool  or  combi- 
nation shall  be  liable  to  the  person,  partnership,  com- 
pany, association  or  corporation  injured  thereby  for  the 
full  amount  of  damages  sustained  in  consequence  of  any 
such  violation  of  the  provisions  of  this  act.  (Id.,  Sec.  2.) 

That  any  person,  partnership,  company,  association  or 
corporation  subject  to  the  provisions  of  this  act,  or  any 
person,  trust,  combination,  pool  or  association,  or  any 
director,  officer,  lessee,  receiver,  trustee,  employee,  clerk, 
agent  or  any  person  acting  for  or  employed  by  them,  who 
shall  violate  any  of  the  provisions  of  Section  1  of  this  act, 
or  who  shall  aid  and  abet  in  such  violation,  shall  be 
deemed  guilty  of  a  misdemeanor,  and  shall  upon  convic- 
tion thereof  be  fined  any  sum  not  less  than  five  hun- 
dred dollars  ($500)  and  not  exceeding  two  thousand 
($2,000)  or  imprisoned  in  the  county  jail  for  a  period  not 
exceeding  six  months,  or  both,  at  the  discretion  of  the 
court.  It  shall  be  the  duty  of  the  grand  jury  to  enquire 
into  and  ascertain  if  there  exists  any  pool,  trust,  combi- 
nation or  violation  of  any  provisions  in  this  act,  in  their 
respective  counties.  (Id.,  Sec.  3.) 


108  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

See  also  chapter  169  of  the  Laws  of  1906,  relating  to 
unfair  commercial  discrimination  in  petroleum  products. 

EVIDENCE. 

SEC.  4612.  But  when  the  matter  sought  to  be  elicited 
would  tend  to  render  him  criminally  liable,  or  to  expose 
him  to  public  ignominy,  he  is  not  compelled  to  answer, 
except  as  provided  in  the  next  section.  But  in  prosecu- 
tions against  gaming,  betting,  lotteries,  dealing  in  op- 
tions, creating,  entering  into  or  becoming  a  member  of, 
or  a  party  to  any  pool,  trust,  agreement,  contract,  com- 
bination, confederation  or  understanding  with  any  other 
corporation,  partnership,  association  or  individual  to 
regulate  or  fix  the  price  of  any  article  of  merchandise  or 
commodity  or  to  fix  or  limit  the  amount  or  quantity  of 
any  article,  commodity  or  merchandise  to  be  manufac- 
tured, mined,  produced  or  sold  in  this  state,  and  keeping 
gambling  houses,  or  rooms  for  illegal  use  or  disposal  of 
intoxicating  liquors,  no  witness  shall  be  excused  from 
giving  testimony  upon  the  ground  that  his  testimony 
would  tend  to  render  him  criminally  liable  or  expose 
him  to  public  ignominy;  but  any  matter  so  elicited  shall 
not  be  used  against  him,  and  said  witness  shall  not  be 
prosecuted  for  any  crime  connected  with  or  growing  out 
of  the  act  on  which  the  prosecution  is  based  in  the  cause 
in  which  his  evidence  is  used  for  the  state,  under  the 
provisions  of  this  section.  (As  amended  by  act  April 
19,  1913.) 

COURT  DECISIONS. 

Beechley  v.  Mulville  et  al.,  102  la.,  602;  70  N.  W. 
Eep.,  107;  71  N.  W.  428. 

Wilson  v.  Morse,  117  Iowa,  581;  91  N.  W.,  823. 
Dorn  v.  Cooper,  117  N.  W.,  1. 


KANSAS. 

STATUTES. 

ACT  OF    1887. 

1.  That  it  shall  be  unlawful  for  any  grain  dealer  or 
grain  dealers,  partnership,  company,  corporation  or  asso- 
ciation of  grain  dealers,  or  any  other  person  or  persons, 
partnership,    company,    corporation,    or    association,    to 
enter  into  any  agreement,  contract  or  combination  with 
any  other  grain  dealer  or  grain  dealers,  partnership,  com- 
pany, corporation  or  association  of  grain  dealers,  or  any 
other  person  or  persons,  partnership,  company,  corpora- 
tion or  association,  for  the  pooling  of  prices  of  different 
and  competing  dealers  and  buyers,  or  to  divide  between 
them  the  aggregate  or  net  proceeds  of  the  earnings  of 
such  dealers  and  buyers,  or  any  portion  thereof,  or  for 
fixing  the  price  which  any  grain  dealer  or  grain  dealers, 
partnerships,    company,    corporation    or    association    of 
grain  dealers,  or  any  other  person  or  persons,  partner- 
ship, company,  corporation  or  association,  shall  pay  for 
grain,  hogs,  cattle,  or  stock  of  any  kind  or  nature  what- 
ever; and  in  case  of  any  agreement,  contract  or  combi- 
nation for  such  pooling  of  prices  of  different  and  com- 
peting dealers  and  buyers,  or  to  divide  between  them  the 
aggregate  or  net  proceeds  of  the  earnings  of  such  dealers 
and  buyers,  or  any  portion  thereof,  or  for  fixing  the  price 
which  any  grain  dealer  or  grain  dealers,  partnership, 
company,  corporation  or  association  of  grain  dealers,  or 
any  other  person  or  persons,  partnership,  company,  cor- 
poration or  association,  shall  pay  for  grain,  hogs,  cattle, 
or  stock  of  any  kind  or  nature  whatever,  each  day  of  its 
continuance   shall  be   deemed   a   separate   offense.     (L. 
1887,  c.  175,  Sec.  1;  G.  S.,  Sec.  5182.) 

2.  That  in  case  any  grain  dealer  or  dealers,  partner- 
ship, company,  corporation  or  association  of  grain  deal- 
ers, or  any  person  or  persons,  partnership,  company,  cor- 
poration or  association  subject  to  the  provisions  of  this 
act,  shall  do  or  cause  to  be  done  or  permit  to  be  done  any 


109 


110  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

act,  matter  or  thing  in  this  act  prohibited  or  declared  to 
be  unlawful,  or  shall  omit  to  do  any  act,  matter  or  thing 
in  this  act  required  to  be  done,  such  grain  dealer  or  grain 
dealers,  partnership,  company,  corporation  or  association 
of  grain  dealers,  or  any  other  person  or  persons,  partner- 
ship, company,  corporation  or  association,  shall  be  liable 
to  the  person  or  persons  injured  thereby  to  the  full 
amount  of  damages  sustained  in  consequence  of  any  such 
violation  of  the  provisions  of  this  act,  together  with  a 
reasonable  counsel  or  attorney's  fee,  to  be  fixed  by  the 
court  in  every  case  of  recovery,  which  attorney's  fee 
shall  be  taxed  and  collected  as  a  part  of  the  costs  in  the 
case;  and  in  any  such  action  brought  for  the  recovery  of 
damages  the  court  before  whom  the  same  shall  be  pend- 
ing may  compel  any  grain  dealer  or  grain  dealers,  part- 
nership, company,  corporation  or  association  of  grain 
dealers,  or  any  person  or  persons,  partnership,  company, 
corporation  or  association  subject  to  the  provisions  of 
this  act,  or  any  director,  officer,  receiver,  trustee,  agent, 
employe,  or  clerk  of  them  or  either  of  them,  defendant  in 
such  suit,  to  attend,  appear  and  testify  in  such  case,  and 
may  compel  the  production  of  the  books  and  papers  of 
such  grain  dealer  or  grain  dealers,  partnership,  company, 
corporation  or  association  of  grain  dealers,  or  any  other 
person  or  persons,  partnership,  company,  corporation  or 
association  party  to  such  suit.  The  claim  that  any  such 
testimony  or  evidence  may  tend  to  criminate  the  person 
giving  such  evidence  shall  not  excuse  such  witness  from 
testifying,  but  such  evidence  or  testimony  shall  not  be 
used  against  such  person  in  the  trial  of  any  criminal  pro- 
ceeding. (Id.,  Sec,  2;  G.  S.,  Sec.  5183.) 

3.  That  any  grain  dealer  or  grain  dealers,  partner- 
ship, company,  or  corporation  or  association  of  grain 
dealers,  or  any  other  person  or  persons,  partnership,  com- 
pany, corporation  or  association  subject  to  the  provisions 
of  this  act,  or  any  director,  officer,  or  any  receiver,  trustee, 
clerk,  or  lessee  or  agent,  or  person  acting  for  or  employed 
by  them  or  either  of  them,  who  alone  or  with  any  other 
partnership,  company,  corporation,  association,  person  or 
party,  shall  wilfully  do  or  cause  to  be  done  or  shall  wil- 
fully suffer  to  permit  to  be  done  any  act,  matter  or  thing 
in  this  act  prohibited  or  declared  to  be  unlawful,  or  who 
shall  aid  or  abet  therein,  or  shall  wilfully  omit  or  fail 
to  do  any  act,  matter  or  thing  in  this  act  required  to  be 
done,  or  shall  cause  or  willingly  suffer  or  permit  any  act, 


KANSAS. 

matter  or  thing  so  directed  or  required  by  this  act  to  be 
done,  not  to  be  so  done,  or  shall  aid  or  abet  such  omission 
or  failure,  or  shall  be  guilty  of  any  infraction  of  this  act, 
or  shall  aid  or  abet  therein,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  shall  upon  conviction  thereof  be  fined 
in  any  sum  not  exceeding  one  thousand  dollars,  or  impris- 
onment in  the  jail  of  the  county  not  exceeding  six  months, 
or  both,  in  the  discretion  of  the  court ;  and  shall  moreover 
be  liable  to  the  suit  of  the  party  injured  or  damaged. 
(Id.,  Sec.  3;  G.  S.,  Sec.  5184.) 

ACT  OP  1889. 

1.  That  all  arrangements,  contracts,  agreements,  trusts, 
or  combinations  between  persons  or  corporations  made 
with  a  view  or  which  tend  to  prevent  full  and  free  com- 
petition  in  the  importation,   transportation   or  sale   of 
articles  imported  into  this  state,  or  in  the  product,  manu- 
facture or  sale  of  articles  of  domestic  growth  or  product 
of  domestic  raw  material,  or  for  the  loan  or  use  of  money, 
or  to  fix  attorneys'  or  doctors'  fees,  and  all  arrangements, 
contracts,   agreements,   trusts   or   combinations   between 
persons  or  corporations,  designed  or  which  tend  to  ad- 
vance, reduce  or  control  the  price  or  the  cost  to  the  pro- 
ducer or  to  the  consumer  of  any  such  products  or  articles, 
or  to  control  the  cost  or  rate  of  insurance,  or  which  tend 
to  advance  or  control  the  rate  of  interest  for  the  loan  or 
use  of  money  to  the  borrower,  or  any  other  services,  are 
hereby  declared  to  be  against  public  policy,  unlawful  and 
void.     (L.  1889,  c.  257,  Sec.  1 ;  G.  S.,  Sec.  5185.) 

2.  It  shall  not  be  lawful  for  any  corporation  to  issue  or 
to  own  trust  certificates,  other  than  the  regularly  and 
lawfully  authorized  stock  thereof,  or  for  any  corporation, 
agent,  officer  or  employes,  or  the  directors  or  stockholders 
of  any  corporation,  to  enter  into  any  combination,  con- 
tract or  agreement  with  any  person  or  persons,  corpora- 
tion or  corporations,  or  with  any  stockholder  or  director 
thereof,  the  purpose  and  effect  of  which  combination, 
contract  or  agreement  shall  be  to  place  the  management 
or  control  of  such  combination  or  combinations,  or  the 
manufactured  product  thereof,  in  the  hands  of  any  trus- 
tee or  trustees,  with  the  intent  to  limit  or  fix  the  price  or 
lessen  the  production  and  sale  of  any  article  of  commerce, 
use  or  consumption,  or  to  prevent,  restrict  or  diminish 


112  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

the  manufacture  or  output  of  any  such  article.     (Id.,  Sec. 
2;  G.  S..  Sec.  5186.) 

3.  That  all  persons  entering  into  any  such  arrange- 
ment, contract,  agreement,  trust  or  combination,  or  who 
shall  after  the  passage  of  this  act  attempt  to  carry  out  or 
act  under  any  such  arrangement,  contract,  agreement,  trust 
or  combination  described  in  section  one  or  two  of  this 
act,  either  on  his  own  account  or  as  agent  or  attorney  for 
another,  or  as  an  officer,  agent  or  stockholder  or  any 
corporation,  or  as  a  trustee,  committee,  or  in  any  capacity 
whatever,  shall  be  guilty  of  a  misdemeanor,  and  on  con- 
viction thereof  shall  be  subject  to  a  fine  of  not  less  than 
one  hundred  dollars  and  not  more  than  one  thousand  dol- 
lars, and  to  imprisonment  not  less  than  thirty  days  and 
not  more  than  six  months,  or  to  both  such  fine  and  impris- 
onment, in  the  discretion  of  the  court.     (Id.,  Sec.  3;  G. 
S.,  Sec.  5187.) 

4.  That  any  person  or  corporation  injured  or  dam- 
aged by  any  such  arrangement,  contract,  agreement,  trust 
or  combination,  described  in  section  one  or  two  of  this 
act,  may  sue  for  and  recover  in  any  court  of  competent 
jurisdiction  in  this  state,  of  any  person  or  corporation, 
the  full  consideration  or  sum  paid  by  him  for  any  goods, 
wares,  merchandise  and  articles  included  in  or  advanced 
or  controlled  in  price  by  said  combination,  or  the  full 
amount  of  money  so  borrowed.     (Id.,  Sec.  4;  G.  S.,  Sec. 
5188.) 

5.  That  when  an  action  at  law  or  suit  in  equity  shall 
be  commenced  in  any  court  of  this  state,  it  shall  be  lawful 
in  the  defense  thereof  to  plead  in  bar  or  in  abatement 
that  the  plaintiff  or  any  other  person  interested  in  the 
prosecution  of  the  case  is  a  member  or  agent  of  an  un- 
lawful combination  as  described  in  section  one  or  two  of 
this  act,  or  that  the  cause  of  action  grows  out  of  such  com- 
bination, or  out  of  some  business  or  transaction  thereof. 
(Id.,  Sec.  5;  G.  S.,  Sec.  5189.) 

6.  That  the  purchase,  sale  or  manufacture  of  any  goods, 
wares,  merchandise  or  other  commodities  in  this  state  by 
any  person  or  corporation  who  has  entered  into  any  such 
arrangements,  contracts,  agreements,  trusts  or  combina- 
tions in  any  other  state  or  territory,  as  described  in  sec- 
tions one  or  two  of  this  act,  or  the  purchase,  sale  or  man- 
ufacture of  any  such  articles  by  any  agent  or  attorney 
for  such  person,  or  as  an  agent,  officer  or  stock  broker  of 
any  such  corporation,  as  a  trustee,  committee,  or  in  any 


KANSAS.  113 

capacity  whatever,  shall  constitute  a  violation  of  this  act, 
and  shall  subject  the  offender  to  the  aforesaid  liabilities 
and  penalties.  (Id.,  Sec.  6;  G.  S.,  Sec.  5190.) 

7.  It  shall  be  the  duty  of  the  county  attorneys  to  dili- 
gently prosecute  any  and  all  persons  violating  any  of  the 
provisions  of  this  act  in  their  respective  counties.     If 
any  county  attorney  shall  fail,  neglect  or  refuse  to  faith- 
fully perform  any  duty  imposed  upon  him  by  this  act, 
he  shall  be  deemed  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof  shall  be  fined  in  any  sum  not  less  than 
one  hundred  dollars  nor  more  than  five  hundred  dollars, 
and  be  imprisoned  in  the  county  jail  not  less  than  ten 
days  nor  more  than  ninety  days;   and  such  conviction 
shall  operate  as  a  forfeiture  of  his  office,  and  the  court 
before  whom  such  conviction  may  be  had  shall  order  and 
adjudge  such  forfeiture  of  office,  in  addition  to  the  fine 
imposed  as  herein  provided.     And  whenever  the  county 
attorney  shall  be  unable  or  shall  neglect  or  refuse  to 
enforce  the  provisions  of  this  act  in  his  county,  or  for 
any  reason  whatever  the  provisions  of  this  act  shall  not 
be  enforced  in  any  county,  it  shall  be  the  duty  of  the  at- 
torney-general to  enforce  the  same  in  such  county,  and 
for  that  purpose  he  may  appoint  as  many  assistants  as 
he  shall  see  fit,  and  he  and  his  assistants  shall  be  author- 
ized to  sign,  verify  and  file  all  such  complaints,  informa- 
tions, petitions  and  papers  as  the  county  attorney  is  au- 
thorized to  sign,  verify  or  file,  and  to  do  and  perform  any 
act  that  the  county  attorney  might  lawfully  do  or  per- 
form ;  and  for  such  services  he  or  his  assistants  shall  re- 
ceive the  same  fees  that  the  county  attorney  would  be 
entitled  to  for  like  services,  to  be  taxed  and  collected  in 
the  same  manner.     (Id.,  Sec.  7;  G.  S.,  Sec.  5191.) 

8.  It  shall  be  the  duty  of  all  sheriffs,  deputy  sheriffs, 
constables,  mayors,  marshals,  police  judges  and  police 
officers  of  any  city  or  town,  having  notice  or  knowledge 
of  any  violation  of  the  provisions  of  this  act,  to  notify  the 
county  attorney  of  the  fact  of  such  violation,  and  to  fur- 
nish him  the  names  of  any  witnesses  within  his  knowl- 
edge by  whom  such  violation  can  be  proven.     If  any  such 
officer  shall  fail  to  comply  with  the  provisions  of  this  sec- 
tion, he  shall  upon  conviction  be  fined  in  any  sum  not  less 
than  one  hundred  dollars  nor  more  than  five  hundred 
dollars;  and  such  conviction  shall  be  a  forfeiture  of  the 
office  held  by  such  person,  and  the  court  before  whom 
such  conviction  is  had  shall,  in  addition  to  the  imposition 

16491—13 8 


114  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

If  the  fine  aforesaid,  order  and  adjudge  the  forfeiture  OA 
his  said  office.     (Id.,  Sec.  8;  G.  S.,  Sec.  5192.) 

9.  It  shall  be  the  duty  of  the  district  courts  to  instruct 
the  grand  juries  especially  as  to  the  provisions  of  this  act. 
(G.  S.,  Sec.  5193. 

ACT  OF  1897.* 

1.  A  trust  is  a  combination  of  capital,  skill,  or  acts, 
by  two  or  more  persons,  firms,  corporations,  or  associa- 
tions of  persons,  or  either  two  or  more  of  them,  for  either, 
any  or  all  of  the  following  purposes: 

First.  To  create  or  carry  out  restrictions  in  trade  or 
commerce,  or  aids  to  commerce,  or  to  carry  out  restric- 
tions in  the  full  and  free  pursuit  of  any  business  author- 
ized or  permitted  by  the  laws  of  this  state. 

Second.  To  increase  or  reduce  the  price  of  merchan- 
dise, produce  or  commodities,  or  to  control  the  cost  or 
rates  of  insurance. 

Third.  To  prevent  competition  in  the  manufacture, 
making,  transportation,  sale  or  purchase  of  mechandise, 
produce  or  commodities,  or  to  prevent  competition  in  aids 
to  commerce. 

Fourth.  To  fix  any  standard  or  figure,  whereby  its 
price  to  the  public  shall  be,  in  any  manner,  controlled  or 
established,  any  article  or  commodity  of  merchandise, 
produce  or  commerce  intended  for  sale,  use  or  consump- 
tion in  this  state. 

Fifth.  To  make  or  enter  into,  or  execute  or  carry  out, 
any  contract,  obligation  or  agreement  of  any  kind  or  de- 
scription by  which  they  shall  bind  or  have  to  bind  them- 
selves not  to  sell,  manufacture,  dispose  of  or  transport 
any  article  or  commodity,  or  article  of  trade,  use,  mer- 
chandise, commerce  or  consumption  below  a  common 
standard  figure,  or  by  which  they  shall  agree  in  any 
manner  to  keep  the  price  of  such  article,  com- 
modity or  transportation  at  a  fixed  or  graded  figure; 
or  by  which  they  shall  in  any  manner  establish  or 
settle  the  price  of  any  article  or  commodity  or  transpor- 
tation between  them  or  themselves  and  others,  to  pre- 
clude a  free  and  unrestricted  competition  among  them- 
selves or  ethers  in. transportation,  sale  or  manufacture  of 

*  This  act  supersedes  chapter  158  of  the  Laws  of  1891,  which  is  no 
longer  in  force.  State  v.  Wilson,  84  Pac.,  737.  This  act  is  constitu- 
tional. Smiley  v.  Kansas,  196  U.  S.,  447. 


KANSAS.  115 

any  such  article  or  commodity;  or  by  which  they  shall 
agree  to  pool,  combine  or  unite  any  interest  they  may 
have  in  connection  with  the  manufacture,  sale  or  trans- 
portation of  any  such  article  or  commodity,  that  its  price 
may  in  any  manner  be  affected. 

And  any  such  combinations  are  hereby  declared  to  be 
against  public  policy,  unlawful  and  void.  (L.  1897,  c. 
265,  Sec.  1;  G.  S.,  Sec.  5142.) 

2.  All  persons,  companies  or  corporations  within  this 
state  are  hereby  denied  the  right  to  form  or  to  be  in  any 
manner  interested,  either  directly  or  indirectly,  as  prin- 
cipal, agent,  representative,  consignee  or  otherwise,  in 
any  trust  as  defined  in  section  one  of  this  act.     (Id.,  Sec. 
2;  G.  S.,  Sec.  5143.) 

3.  Any  corporation  holding  a  charter  under  the  laws 
of  the  state  of  Kansas  which  shall  violate  any  of  the  pro- 
visions of  this  act  shall  thereby  forfeit  its  charter  and 
franchise,  and  its  corporate  existence  shall  cease  and  de- 
termine ;  any  any  stockholder,  director,  officer,  agent,  rep- 
resentative or  consignee  of  any  such  corporations  shall  be 
subject  to  the  penalties  herein  prescribed.     (Id.,  Sec.  3; 
G.  S.,  Sec.  5144.) 

4.  For  a  violation  of  any  of  the  provisions  of  this  act 
by  any  corporation  or  any  of  its  officers  or  agents  men- 
tioned herein,  it  shall  be  the  duty  of  the  attorney-general 
of  the  state,  or  county  attorney  of  any  county  in  which 
said  violation  may  occur,  or  either  of  them,  upon  his 
own  motion,  to  institute  an  action  in  any  court  in  this 
state  having  jurisdiction  thereof  for  the  forfeiture  of  the 
charter,  rights  and  franchise  of  such  corporation,  and  the 
dissolution  of  its  corporate  existence.     (Id..  Sec.  4;  G.  S., 
Sec.  5145.) 

5.  Every  person,  company  or  corporation  within  or 
without  this  state,  their  officers,  agents,  representatives  or 
consignees,  violating  any  of  the  provisions  of  this  act 
within  this  state,  are  hereby  denied  the  right  and  are 
hereby  prohibited  from  doing  any  business  within  this 
state,  and  all  persons,  companies  and  corporations,  their 
officers,    agents,    representatives    and    consignees   within 
this  state,  are  hereby  denied  the  right  to  handle  the  goods 
of  or  in  any  manner  deal  with,  directly  or  indirectly,  any 
such    person,    company    or    corporation,    their    officers, 
agents,  representatives,  or  consignees,  and  it  shall  be  the 
duty  of  the  attorney-general  and  the  county  attorney  of 
any  county  in  the  state  where  any  violation  of  this  act 


116  LAWS   OX    TRUSTS   AXD    MONOPOLIES. 

be  committed,  or  either  of  them,  to  enforce  the  provisions 
of  this  section  by  injunction  or  other  proceeding;  and  all 
persons,  companies  and  corporations,  their  officers, 
agents,  representatives  or  consignees,  violating  any  of 
the  provisions  of  this  section,  either  directly  or  indi- 
rectly, or  of  abetting  or  aiding  either  directly  or  indi- 
rectly in  any  violation  of  any  provisions  of  this  section, 
shall  be  deemed  guilty  of  a  misdemeanor,  and  shall  be 
fined  not  less  thaii  one  hundred  dollars  nor  more  than  one 
thousand  dollars,  and  confined  in  jail  not  less  than  thirty 
days  nor  more  than  six  months,  and  shall  forfeit  not  less 
than  one  hundred  dollars  for  each  and  every  day  such 
violation  may  continue,  which  may  be  recovered  in  the 
name  of  the  state  of  Kansas  in  any  court  of  competent 
jurisdiction.  (Id.,  Sec.  5;  G.  S.,  Sec.  5146.) 

6.  Each   and  every  person,  company  or   corporation, 
their  officers,  agents,  representatives  or  consignees,  who 
either  directly  or  indirectly  violate  any  of  the  provisions 
of  this  act  shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  subject  to  a  fine  of  not  less 
than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  and  shall  be  imprisoned  not  less  than  thirty  days 
nor  more  than  six  months,  and  in  addition  thereto,  for 
each  and  every  day  thereafter  that  such  violation  shall 
be  committed  or  continued,  forfeit  and  pay  the  sum  of 
one  hundred  dollars,  which  may  be  recovered  in  the  name 
of  the  state  of  Kansas  in  any  county  where  the  offense  is 
committed  or  where  either  of  the  offenders  reside ;  and  it 
shall  be  the  duty  of  the  attorney-general  of  the  state,  or 
the  county  attorney  of  any  county  in  the  state,  in  which 
said  violation  shall  occur,  or  either  of  them,  to  prosecute 
and  enforce  the  provisions  of  this  act.     (Id.,  Sec.  6;  G. 
S.,  Sec.  5147.) 

7.  Any  contract  or  agreement  in  violation  of  any  of  the 
provisions  of  this  act  shall  be  absolutely  void  and  not 
enforceable  in  any  of  the  courts  of  this  state;  and  when 
any  civil  action  shall  be  commenced  in  any  court  of  this 
state  it  shall  be  lawful  to  plead  in  the  defense  thereof 
that  the  plaintiff  or  any  other  person  interested  in  the 
prosecution  of  the  case  is  at  the  time  or  has  within  one 
year  next  preceding  the  date  of  the  commencement  of  any 
such  action  been  guilty,  either  as  principal,  agent,  repre- 
sentative, or  consignee,  directly  or  indirectly,  of  a  viola- 
tion of  any  of  the  provisions  of  this  act,  or  that  the  cause 


KANSAS.  117 

of  action  grows  out  of  any  business  transaction  in  viola- 
tion of  this  act.     (Id.,  Sec.  7;  G.  S.,  Sec.  5148.) 

8.  That  any  person,  firm,  company  or  corporation  that 
may  be  damaged  by  any  such  agreement,  trusts  or  combi- 
nations described  in  sections  one  and  two  of  this  act,  may 
sue  for  and  recover  in  any  court  of  competent  jurisdic- 
tion in  this  state,  of  any  person,  company  or  corporation 
operating  such  trust  or  combination,  such  damages  as 
they  have  sustained,  together  with  a  reasonable  attorney- 
fee.  (Id.,  Sec.  8;  G.  S.,  Sec.  5149.) 

9  It  shall  be  the  duty  of  the  attorney-general  of  the 
state  and  the  county  attorneys  in  their  respective  coun- 
ties to  diligently  prosecute  any  and  all  persons  violating 
any  of  the  provisions  of  this  act ;  and  it  shall  be  the  duty 
of  all  state  and  count}^  officials  having  notice  and  knowl- 
edge of  any  violation  of  the  provisions  of  this  act  to 
notify  the  county  attorney  of  their  respective  counties 
and  the  attorney-general  of  the  state  of  the  fact  of  such 
violation,  and  to  furnish  them  with  the  names  of  any 
witnesses  by  whom  such  violations  can  be  proved.  If 
any  such  officer  or  officers  shall  fail  to  comply  with  the 
provisions  of  this  section  he  shall  upon  conviction  be  fined 
in  any  sum  not  less  than  one  hundred  dollars  nor  more 
than  one  thousand  dollars,  and  such  conviction  shall  be 
a  forfeiture  of  the  office  held  by  such  person,  and  the 
court  before  whom  such  conviction  is  had  shall,  in  addi 
tion  to  the  imposition  of  the  fine  aforesaid,  order  and 
adjudge  the  forfeiture  of  his  said  office.  (Id..  Sec.  9;  G. 
S.,  Sec.  5150.) 

10.  The  several  district  courts  of  this  state  and  the 
judges  thereof  shall  have  jurisdiction,  and  it  shall  be 
their  duty,  upon  good  cause  shown  and  upon  written  ap- 
plication of  the  county  attorney  or  the  attorney-general, 
to  cause  to  be  issued  by  the  clerk  of  said  court  subpoenas 
for  such  witnesses  as  may  be  named  in  the  application  of 
a  county  attorney  or  the  attorney-general,  and  to  cause 
the  same  to  be  served  by  the  sheriff  of  the  county  where 
such  subpoena  is  issued ;  and  such  witnesses  shall  be  com- 
pelled to  appear  before  such  court  or  judge  at  the  time 
and  place  set  forth  in  the  subpoena,  and  shall  be  com- 
pelled to  testify  as  to  any  knowledge  they  may  have  of 
the  violations  of  any  of  the  provisions  of  this  act;  and 
any  witness  who  fails  or  refuses  to  attend  and  testify 
shall  be  punished  as  for  contempt,  as  provided  by  law. 


118  LAWS   ON   TRUSTS   AND    MONOPOLIES. 

Any  person  subpoenaed  and  examined  shall  not  be  liable 
to  criminal  prosecution  for  any  violation  of  this  act 
about  which  he  may  testify.  Neither  shall  the  evidence 
of  any  such  witness  be  used  against  him  in  any  criminal 
proceeding.  The  evidence  of  all  witnesses  so  subpoenaed 
shall  be  taken  down  by  the  reporter  of  said  court,  and 
shall  be  transcribed  and  placed  in  the  hands  of  the 
county  attorney  or  the  attorney-general,  and  he  shall,  in 
the  proper  courts,  at  once  prosecute  such  violator  or  vio- 
lators of  this  act  as  the  testimony  so  taken  shall  disclose. 
Witnesses  subpoenaed  as  provided  for  in  this  section  shall 
be  compelled  to  attend  from  any  county  in  the  state. 
(Id.,  Sec.  10;  G.  S.,  Sec.  5151.) 

11.  Nothing  in  this  chapter  shall  be  held  or  construed 
to  affect  any  actions  or  prosecution  which  is  now  pend- 
ing under  the  provisions  of  any  law  now  in  existence  in 
this  state.  (Id.,  Sec.  11;  G.  S.,  Sec.  5152.) 

ACT  OF  1899. 

1.  If  any  person,  company  or  corporation  doing  busi- 
ness in  Kansas  shall  make  any  agreement,  expressed  or 
implied,  or  by  any  understanding  or  combination  with 
any  person,  company  or  corporation  within  or  without 
the  state,  by  which  any  shipper  of  seeds,  grains,  hay  or 
live  stock  is  defrauded  out  of  any  portion  of  the  net 
weight  of  any  consignment  or  grain,  seeds,  hay,  or  live 
stock,  all  such  agreements  or  combinations  are  hereby  de- 
clared to  be  in  restraint  of  trade,  and  any  such  person, 
company  or  corporation  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  upon  conviction  shall  be  fined  in  the  sum 
of  not  less  than  one  hundred  dollars  and  not  exceeding 
one  thousand  dollars  for  each  offense.     (L.  1899,  c.  293, 
Sec.  1;  G.  S.,  Sec.  5177.) 

2.  Every   person,   servant,   agent  or  employe  of  any 
firm  or  corporation  doing  business  within  the  state  of 
Kansas  that  shall  conspire  or  combine  with  any  other 
persons,  firm  or  corporation  within  or  without  the  state 
for  the  purpose  of  monopolizing  any  line  of  business  or 
shall  conspire  or  combine  for  the  purpose  of  preventing 
the  producer  of  grain,  seeds  or  live  stock  or  hay,  or  the 
local  buyer  thereof,  from  shipping  or  marketing  the  same 
without  the  agency  of  any  third  person,  firm  or  corpora- 
tion, shall  be  deemed  guilty  of  a  misdemeanor,  and  on 
conviction  shall  be  fined  in  a  sum  not  less  than  one  thou- 


KANSAS,  119 

sand  dollars  and  not  to  exceed  five  thousand  dollars  for 
each  offense.     (Id.,  Sec.  2;  G.  S.,  Sec.  5178.) 

3.  Any  person  who  shall  as  agent  or  employe  of  any 
person,  firm  or  corporation,  enter  into  an  agreement,  ex- 
pressed cr  implied,  by  which  it  is  stipulated  that  grain, 
seeds  or  hay  shall  not  be  shipped  by  the  producer  or  local 
buyer  unless   accompanied  with  warehouse  receipts,  or 
that  the  same  shall  in  any  manner  be  under  the  control 
of  any  warehouseman  cr  agent  as  a  condition  precedent 
to  the  marketing  of  said  grain,  all  such  agreements  shall 
be  deemed  and  are  hereby  declared  unlawful  and  in  re- 
straint of  trade,  and  the  person  entering  into  such  agree- 
ment or  combination  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  upon  conviction  shall  be  fined  in  a  sum  not 
less  than  one  thousand  dollars  and  not  more  than  five 
thousand  dollars,  or  by  imprisonment  in  the  county  jail 
not  less  than  ninety  days  and  not  to  exceed  one  year,  or 
by  both  such  fine  and  imprisonment,  at  the  discretion  of 
the  court.     (Id.,  Sec.  3;  G.  S.,  Sec.  5179.) 

4.  The  several  district  courts  and  the  supreme  court  of 
the  state  of  Kansas  are  hereby  vested  with  jurisdiction  to 
prevent  and  restrain  violators  of  this  act,  and  it  shall  be 
duty  of  the  attorney-general  to  enforce  the  provisions  of 
this  act,  and  such  proceedings  may  be  instituted  by  pe- 
tition, setting  forth  the  cause  of  complaint,  praying  re- 
lief, verifying  said  petition  by  affidavit,  and  the  court 
shall  grant  temporary  restraining  orders  enjoining  or 
prohibiting  such  violation  till  the  final  hearing  of  the 
case.     Said  restraining  order  shall  be  granted  without 
bond.     (Id.,  Sec.  4;  G.  S.,  Sec.  5180.) 

5.  Any  person,  firm  or  corporation  that  shall  be  in- 
jured in  business  or  property  by  any  other  person,  firm  or 
corporation  by  reason  of  anything  declared  unlawful  or 
in  restraint  of  trade  by  this  act,  shall  have  a  right  of 
action  against  the  person,  firm  or  corporation  violating 
the  provisions  of  this  act  for  threefold  damages,  includ- 
ing costs  and  reasonable  attorneys'  fees.     (Id.,  Sec.  5; 
G.  S.,  Sec.  5181.) 

ACT  OF  1905. 

1.  Any  person,  firm,  or  corporation,  foreign  or  do- 
mestic, doing  business  in  the  state  of  Kansas,  and  en- 
gaged in  the  production,  manufacture  or  distribution  of 
any  commodity  in  general  use,  that  shall  intentionally, 
for  the  purpose  of  destroying  competition,  discriminate 
between  different  sections,  communities  or  cities  of  this 


120  LAWS  ON   TRUSTS  AND   MONOPOLIES. 

state,  by  selling  such  commodity  at  a  lower  rate  in  one 
section,  community  or  city  or  any  portion  thereof  than  is 
charged  for  such  commodity  in  another  section,  commu- 
nity, or  city,  after  equalizing  the  distance  from  the  point 
of  production,  manufacture  or  distribution  and  freight 
rates  therefrom,  shall  be  deemed  guilty  of  unfair  discrim- 
ination. (L.  1905.  c.  2,  Sec.  1;  G.  S.,  Sec.  5162.) 

2.  If  complaint  shall  be  made  to  the  charter  board  of 
the  state  of  Kansas  that  any  corporation  chartered  in  this 
state  or  authorized  to  do  business  therein  is  guilty  of  un- 
fair discrimination  within  the  terms  of  this  act,  it  shall 
be  the  duty  of  the  charter  board  to  institute  an  inquiry 
as  to  such  discrimination,  giving  to  the  party  complained 
against  notice  and  reasonable  opportunity  to  be  heard, 
and  if  in  the  judgment  of  such  charter  board,  or  a  ma- 
jority thereof,  any  corporation,  foreign  or  domestic,  shall 
have  been  guilty  of  unfair  discrimination,  within  the 
terms  of  this  act,  the  said  charter  board  shall  so  find,  and 
make  a  record  of  such  fact  upon  the  records  of  the  char- 
ter board,  and  shall  immediately  forfeit  the  charter  of 
such  corporation,  if  it  be  a  domestic  corporation,  or,  if 
it  be  a  foreign  corporation,  shall  immediately  forfeit  the 
permit  of  such  foreign  corporation  to  do  business  in  this 
state.     (Id.,  Sec.  2;  G.  S.,  Sec.  5163.) 

3.  If  after  the  revocation  of  such  charter,  in  the  case 
of  a  domestic  corporation,  or  of  its  permit,  if  it  be  a  for- 
eign corporation,  any  corporation  shall  continue  or  at- 
tempt to  do  business  in  the  state  of  Kansas,  it  shall  be  the 
duty  of  the  attorney-general,  by  a  proper  suit  in  the  name 
of  the  state  of  Kansas,  to  oust  such  corporation  from  all 
business  of  every  kind  and  character  in  said  state  of 
Kansas.     (Id.,  Sec.  3 ;  G.  S.y  Sec.  5164.) 

4.  Any  person,  firm  or  corporation  violating  the  pro- 
visions of  this  act.  upon  conviction  thereof  shall  forfeit 
to  the  state  of  Kansas  the  sum  of  not  less  than  two  hun- 
dred dollars  for  each  and  every  violation  of  this  act; 
said  sum  to  be  recovered  by  a  suit  in  the  name  of  the 
state  of  Kansas  in  any  court  of  competent  jurisdiction, 
by  the  attorney-general.     All  sums  collected  under  this 
act  shall  be  credited  to  the  permanent  school  fund  of  the 
state  of  Kansas.  .  (Id.,  Sec.  4;  G.  S..  Sec.  5165.) 

5.  Nothing  in  this  act  shall  be  construed  as  repealing 
any  other  act  or  part  of  an  act,  but  the  remedies  herein 
provided  shall  be  cumulative  to  all  other  remedies  pro- 
vided by  law.     (Id.,  Sec.  5;  G.  S.,  Sec.  5166.) 


KANSAS.  121 

ACT  OF  1907. 

1,  That  in  all  civil  actions  brought  in  the  supreme 
court  or  in  the  district  courts  of  this  state  for  the  pur- 
pose of  enforcing  the  provisions  of  chapter  113a  of  the 
General  Statutes  of  1901,  being  an  act  entitled  "An  act 
defining  and  prohibiting  trusts,  providing  procedure  to 
enforce  the  provisions  of  this  act,  and  providing  penalties 
for  violations  of  the  provisions  of  this  act  " ;  or  article  13 
of  chapter  21  of  said  General  Statutes  of  1901,  the  same 
being  composed  of  acts  entitled  as  follows:  "An  act  to 
prohibit  grain  dealers,  partnerships,  companies,  corpora- 
tions or  associations  from  combining  or  entering  into  any 
agreement  or  contract  to  pool  or  fix  the  price  to  be  paid 
for  grain,  hogs,  cattle,  or  stock  of  any  kind  whatever,  and 
to  provide  punishment  for  violations  of  the  same,"  "An 
act  to  declare  unlawful  trusts  and  combinations  in  re- 
straint of  trade  and  products,  and  to  provide  penalties 
therefor,"  "An  act  prohibiting  combinations  to  prevent 
competition  among  persons  engaged  in  buying  or  selling 
live  stock,  and  to  provide  penalties  therefor,"  "An  act  to 
prohibit  combinations   in   restraint  of  trade,   declaring 
such  combinations  unlawful,  and   prescribing  penalties 
for  the  violation  of  this  act,"  whether  such  suits  are  for 
the  purpose  of  ousting  corporations,  firms  or  associa- 
tions from  transacting  business  in  the  state  through  or  in 
pursuance  of  unlawful  agreements  and  combinations  in 
restraint  of  trade  or  to  enjoin  such  unlawful  combina- 
tions and  agreements,  the  said  court  may  on  motion  of 
either   party  require   the  opposing  litigant  to  produce 
books  or  writings  in  his  possession  or  under  his  power 
which  may  contain  evidence  pertinent  to  the  issue,  and 
may  require  the  party  to  answer  interrogatories  filed  in 
court  with  said  motion  for  the  discovery  of  facts  material 
to  the  support  or  defense  of  the  action;  and  if  either  of 
said  parties  fail  to  comply  with  such  order  of  the  court 
or  judge,  the  court  may,  on  motion,  give  judgment  by 
default.     (L.  1907,  c.  259,  Sec.  1;  G.  S.,  5153.) 

2.  That  the  opposing  party  to  whom  the  interroga- 
tories are  propounded  shall  answer  the  said  interrogato- 
ries explicitly,  fully,  and  without  evasion,  and  such  an- 
swers shall  be  under  oath ;  provided,  that  no  answers  to 
such  interrogatories  shall  be  used  in  any  criminal  prose- 
cution against  the  party  so  answering,  nor  shall  the  per- 
son answering  or  producing  such  books  or  papers  be 


122  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

liable  to  criminal  prosecution  for  any  offense  about  which 
his  answers  or  books  and  papers  produced  would  be  evi- 
dential. (Id.,  Sec.  2;  G.  S.,  Sec.  5154.) 

3.  That  the  motion  of  the  party  asking  for  the  produc- 
tion of  such  books  or  papers,  or  filing  such  interrogatories, 
shall  be  supported  by  the  affidavit  of  the  interrogator 
or  of  his  attorney  that  he  has  reason  to  believe  that  the 
party  making  the  application  will  derive  some  material 
benefit  in  the  action  from  the  answers  which  he  seeks  if 
the  answers  are  fairly  made ;  that  it  is  not  sought  for  the 
purpose  of  harassment,  vexation,  or  delay;  and  that  he 
has  reason  to  believe  and  does  believe  that  the  party  who 
is  asked  to  produce  such  books  or  writings  or  to  whom 
said  interrogatories  are  addressed  has  knowledge  of  the 
facts  sought  to  be  discovered,  and  that  the  discovery  of 
said  facts  is  not  as  open  to  the  party  making  the  mo- 
tion or  filing  said  interrogatories  as  they  are  to  the  party 
addressed   or   interrogated.     (Id.,   Sec.    3;    G.    S.,   Sec. 
5155.) 

4.  That  the  court  or  judge  may  grant  the  motion  upon 
notice  and  it  shall  be  sufficiently  granted  or  allowed  if  the 
court  or  judge  will  indorse  the  motion  itself  with  an  en- 
try substantially  as  follows:  "Allowed  this  _— —  day  of 

19__     A.  B.,  Judge."     (Id.,  Sec.  4; 

G.  S.,  Sec.  5156.) 

5.  That  upon  the  granting  or  allowance  of  said  mo- 
tion, notice  thereof  shall  be  given  to  the  party  addressed 
or  sought  to  be  interrogated,  and  his  acknowledgment 
of  said  notice  will  be  sufficient  if  signed  by  himself  or  by 
his  attorney  of  record.     (Id.,  Sec.  5;  G.  S.,  Sec.  5157.) 

6.  That  if  the  party  required  to  produce  the  books  and 
papers  as  provided  by  this  act  shall  fail  to  produce  them 
at  the  trial,  without  sufficient  cause,  the  court  may  on  mo- 
tion made  give  judgment  against  him  by  default.     (Id., 
Sec.  6;  G.  S.,  Sec.  5158.) 

ACT  OF  1909. 

AN  ACT  Relating  to  unlawful  monopolies,  trusts  and  combinations 
in  restraint  of  trade,  providing  additional  penalties  for  the  vio- 
lation of  chapter  265  of  the  Laws  of  1897,  and  providing  for  the 
better  enforcement  thereof. 

In  addition  to  all  other  penalties  and  forfeitures  now 
provided  by  law,  each  and  every  firm,  person,  corporation 
or  association  of  persons  who  shall  in  any  manner  violate 


KANSAS.  123 

any  of  the  provisions  of  chapter  265  of  the  Laws  of  1807. 
which  act  relates  to  unlawful  monopolies,  trusts,  conspira- 
cies and  combinations  in  restraint  of  trade,  shall  for  each 
and  every  day  that  such  violations  shall  be  committed  or 
continued  forfeit  and  pay  the  sum  of  one  hundred  dollars, 
which  may  be  recovered  in  the  name  of  the  state  of  Kan- 
sas in  any  county  where  the  offense  is  committed,  or 
where  any  or  either  of  the  offenders  reside,  and  it  shall 
be  the  duty  of  the  attorney-general  to  prosecute  for  the 
recovery  of  said  penalties.  It  shall  not  be  necessary  to 
convict  any  firm,  person,  corporation  or  association  of  per- 
sons before  commencing  suit  to  recover  the  penalties  pro- 
vided for  in  this  section,  but  said  penalties  shall  apply  to 
any  such  firm,  person,  corporation  or  association  whether 
they  or  any  of  them  shall  be  prosecuted  criminally  or  not ; 
provided,  said  penalty  shall  not  accrue  during  the  pend- 
ency of  any  actions  under  this  act.  (L.  1909,  c.  261,  Sec. 
1;  G.  S.,  Sec.  5159.) 

Actions  to  recover  said  penalties  may  be  joined  with 
actions  in  quo  warranto,  injunctions  or  actions  of  any 
other  nature  brought  for  the  purpose  of  ousting  firms, 
corporations  or  associations  from  transacting  business 
in  this  state  because  of  the  violations  of  any  provision 
of  chapter  265  of  the  Laws  of  1897,  and  any  court  in 
which  said  action  shall  be  brought  shall  have  authority 
in  such  quo  warranto,  injunction  or  other  suit,  in  addi- 
tion to  the  judgments  now  provided  for  by  law,  to  render 
judgment  for  said  penalties  as  herein  provided.  (Id., 
Sec.  2;  G.  S.,  Sec.  5160.) 

.  The  rights  and  remedies  given  by  this  act  shall  be  con- 
strued as  cumulative  of  all  other  laws  in  force  in  this 
state,  and  shall  not  affect,  change  or  repeal  any  other 
remedies  or  rights  now  existing  in  this  state  for  the  en- 
forcement, payment  or  collection  of  fines,  penalties  and 
forfeitures.  (Id.,  Sec.  3;  G.  S.,  Sec.  5161.) 

COURT  DECISIONS. 

The  State  of  Kansas  v.  Wm.  C.  Phipps  et  al.,  50  Kans., 
€09,  18  L.  K.  A.,  657. 

Barton  v.  Mulvane,  59  Kan.,  313,  52  Pac.,  883. 

Crystal  Ice  Go.  v.  Wylie,  65  Kan.,  104,  68  Pac.,  1086. 

State  v.  Smiley,  65  Kan.,  240,  67  L.  E.  A.,  903,  69  Pac., 
199.  Aff'd  in  196  U.  S.,  447. 

State  v.  Dreany,  65  Kan.,  292,  69  Pac.,  182. 

Greer  v.  Payne,  4  Kan.  App.,  153,  46  Pac.,  190. 

Re  Pinkney,  47  Kan.,  89,  27  Pac.,  179. 


KENTUCKY. 

CONSTITUTION. 

SEC.  198.  It  shall  be  the  duty  of  the  general  assembly 
from  time  to  time,  as  necessity  may  require,  to  enact  such 
laws  as  may  be  necessary  to  prevent  all  trusts,  pools, 
combinations  or  other  organizations  from  combining  to 
depreciate  below  its  real  value  any  article,  or  to  enhance 
the  cost  of  any  article  above  its  real  value. 

STATUTES.     (ACT  1890.) 

That  if  any  corporation  organized  under  the  laws  of 
Kentucky,  or  under  the  laws  of  any  other  state  or  country, 
for  transacting  or  conducting  any  kind  of  business  in  this 
state,  or  any  partnership,  company,  firm  or  individual, 
or  other  association  of  persons,  shall  create,  establish, 
organize  or  enter  into,  or  become  a  member  of,  or  a  party 
to,  or  in  any  way  interested  in,  any  pool,  trust,  combine, 
agreement,  confederation  or  understanding  with  any 
other  corporation,  partnership,  individual  or  person,  or 
association  of  persons,  for  the  purpose  of  regulating  or 
controlling  or  fixing  the  price  of  any  merchandise,  manu- 
factured articles  or  property  of  any  kind,  or  shall  enter 
into,  become  a  member  of,  or  party  to,  or  in  any  way  in- 
terested in,  any  pool,  agreement,  contract,  understanding, 
combination  or  confederation,  having  for  its  object  the 
fixing,  or  in  any  way  limiting  the  amount  or  quantity  of 
any  article  of  property,  commodity  or  merchandise  to  be 
produced  or  manufactured,  mined,  bought  or  sold,  shall 
be  deemed  guilty  of  the  crime  of  conspiracy,  and  pun- 
ished therefor  as  provided  in  the  subsequent  sections  of 
this  act.  (Sec.  3915.) 

It  shall  not  be  lawful  for  any  corporation  to  issue  or 
to  own,  have  or  sell  any  trust  certificates  or  stocks,  or  for 
any  corporation's  agent,  officer  or  employee,  agent  or 
director,  or  any  corporation  to  enter  into,  either  verbally 
or  in  writing,  any  combinations,  contract,  agreement  or 

126 


126  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

understanding  with  any  person  or  persons,  corporation 
or  corporations,  or  with  any  director,  agent  or  officer 
thereof,  the  purpose  or  effect  of  which  combination,  con- 
tract, agreement  or  understanding  would  be  to  place  the 
management,  control  or  any  part  of  the  business  of  such 
combination  or  association,  or  the  manufactured  product 
thereof,  in  the  hands  or  under  the  control,  in  whole  or  in 
part,  of  any  trustee  or  trustees,  or  agents,  or  any  person 
whatever,  with  the  intent,  or  to  have  the  effect  to  limit, 
fix,  establish  or  change  the  price  of  the  production  or 
sale  of  any  article  of  property  or  of  commerce,  or  to  pre- 
vent, restrict,  or  in  any  way  diminish  the  manufacture 
or  output  of  any  such  article  or  property.  (Sec.  3916.) 

If  any  corporation,  company,  firm,  partnership  or  per- 
son, or  association  of  persons,  shall,  by  court  of  com- 
petent jurisdiction,  be  found  guilty  of  any  violation  of 
any  of  the  provisions  of  this  act,  such  guilty  party  shall 
be  punished  by  a  fine  of  not  less  than  five  hundred  dol- 
lars, and  not  more  than  five  thousand  dollars.  Any  presi- 
dent, manager,  director  or  other  officer  or  agent,  or  re- 
ceiver of  any  corporation,  company,  firm,  partnership  or 
any  corporation,  company,  firm  or  association,  or  mem- 
ber of  any  corporation,  firm  or  association,  or  any  mem- 
ber of  any  company,  firm  or  other  association,  or  any 
individual,  found,  by  a  court  of  competent  jurisdiction, 
guilty  of  any  violation  of  this  act,  shall  be  punished  by  a 
fine  of  not  less  than  five  hundred  dollars  nor  more  than 
five  thousand  dollars,  or  may  be  imprisoned  in  the  county 
jail  not  less  than  six  months  nor  more  than  twelve 
months,  or  may  be  both  so  fined  and  imprisoned  in  the 
discretion  of  the  court  or  jury  trying  the  case.  (Sec. 
3917.) 

Any  contract  or  agreement  or  understanding  in  viola- 
tion of  the  provisions  of  the  preceding  sections  of  this  act 
shall  be  null  and  void ;  and  any  purchasers  of  property 
or  article,  or  of  any  commodity,  from  any  individual, 
firm,  company  or  corporation  transacting  business  con- 
trary to  the  preceding  sections  of  this  act,  shall  not  be 
liable  for  the  price  of  payment  of  such  article  or  com- 
modity or  property,  and  may  plead  and  rely  on  this  act 
as  a  complete  defense  to  any  suit  for  such  price  of  pay- 
ment. (Sec,  3918.) 

If  any  corporation  created  or  organized  by  or  under 
the  laws  of  this  state  shall  be  indicted  and  convicted  for 
any  violation  of  any  of  the  provisions  of  this  act,  such 


KENTUCKY.  127 

indictment,  trial  and  conviction  in  any  court  of  com 
petent  jurisdiction  shall  have  the  effect  to  forfeit  the 
charter  of  such  corporation  without  any  further  proceed- 
ings on  the  subject  of  the  forfeiture  of  its  charter;  but 
any  corporation  whose  charter  is  so  forfeited  shall  have 
the  right  of  appeal  as  is  provided  in  other  cases,  and  the 
filing  of  the  bond  as  is  required  by  law  shall  suspend  the 
judgment  of  forfeiture  until  same  is  passed  upon  by  the 
court  to  which  the  case  is  appealed.  (Sec.  3919.) 

It  shall  be  the  duty  of  the  circuit  judges,  and  other 
judges  of  similar  jurisdiction  in  this  state,  to  give  the 
provisions  of  this  act  in  charge  to  the  grand  juries  at  each 
term  of  their  courts.  (Sec.  3920.) 

The  provisions  of  the  Code  of  Practise  regulating  ap- 
peals in  other  cases  shall  apply  to  appeals  under  this  act, 
(Sec.  3921.) 

[Chapter  117.    Laws  of  Kentucky,  1906.]  * 

AN  ACT  Permitting  persons  to  combine  or  pool  their  crops  of 
wheat,  tobacco  and  other  products  and  sell  same  as  a  whole,  and 
making  contracts  in  pursuance  thereof  valid. 

Be  it  enacted  ~by  the  General  Assembly  of  the  Common- 
wealth of  Kentucky: 

SECTION  1.  It  is  hereby  declared  lawful  for  any  number 
of  persons  to  combine,  unite  or  pool,  any  or  all  of  the 
crops  of  wheat,  tobacco,  corn,  oats,  hay,  or  other  farm 
products  raised  by  them,  for  the  purpose  of  classifying, 
grading,  storing,  holding,  selling  or  disposing  of  same, 
either  in  parcels  or  as  a  whole,  in  order  or  for  the  pur- 
pose of  obtaining  a  greater  or  higher  price  therefor  than 
they  might  or  could  obtain  or  receive  by  selling  said 
crops  separately  or  individually. 

SEC.  2.  That  contracts  or  agreements  made  or  entered 
into  by  persons  with  each  other,  the  object  or  intent  of 
which  is  to  unite,  pool  or  combine  all  or  any  of  the  crops 
of  tobacco,  wheat,  corn,  oats,  hay,  or  other  farm  prod- 
ucts, raised  by  such  persons,  for  the  purpose  of  classi- 
fying, grading,  storing,  holding,  selling  or  disposing  of 
said  crops,  or  any  of  them,  either  in  parts  or  as  a  whole, 
in  order,  or  for  the  purpose  of  obtaining  a  better  or 
higher  price  therefor  than  could  or  might  be  obtained  by 
selling  said  crops  separately  or  individually,  are  hereby 
permitted,  and  shall  not,  because  of  any  such  combina- 

1  Now  questioned  under  the  14th  amendment  in  case  of  Collins  v . 
Kentucky,  pending  before  Supremo  Court  of  United  States. 


128  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

tion  or  purpose  of  said  persons,  be  declared  illegal  or 
invalid. 

SEC.  3.  Such  persons  so  entering  into  such  agreement 
or  contract  as  is  set  out  in  the  foregoing  sections,  are 
hereby  permitted  to  select  an  agent  or  agents  through 
or  by  or  with  whom  said  parties  so  entering  into  such 
agreements  may  classify,  grade,  store,  hold,  sell  or  dis- 
pose of  said  crops,  or  any  of  them,  and  said  agent  or 
agents  shall  have  the  right  to  take,  receive,  hold,  store, 
classify,  grade,  sell  or  dispose  of  said  crops  so  placed  in 
such  agreement,  as  directed  or  authorized  by  their  prin- 
cipal, for  the  purpose  of  accomplishing  the  object  of 
such  combination  or  agreement  between  such  principals, 
and  contracts  and  agreements  entered  into  by  such  agent 
or  agents  for  the  purpose  of  classifying,  grading,  storing, 
holding,  selling  or  disposing  of  said  crops  so  combined, 
united  or  pooled,  either  in  parcels  or  as  a  whole,  are 
hereby  permitted,  and  shall  not,  because  of  any  such  com- 
bination or  purpose  of  such  original  agreement  of  such 
principals  so  entering  into  said  combination,  or  of  such 
agent  or  agents,  be  declared  illegal  or 'invalid. 

SEC.  4.  Whereas,  many  persons  of  this  Commonwealth 
now  desire  to  combine  their  respective  crops  of  tobacco, 
wheat,  corn,  oats,  hay  and  other  farm  products,  an  emer- 
gency is  now  declared  to  exist  which  requires  that  this 
act  should,  and  it  shall,  take  effect  from  and  after  its 
passage  and  approval  by  the  Governor.  (Approved 
Mar.  21,  1906.) 

[Chapter  8.     Laws  of  Kentucky,  1908.]  * 

AN  ACT  To  amend  section  3  of  an  act  of  the  General  Assembly 
of  Commonwealth  of  Kentucky,  approved  March  21,  1906, 
entitled  "An  act  permitting  persons  to  combine  or  pool  their 
crops  of  wheat,  tobacco  and  other  products  and  sell  same  as 
a  whole  and  making  contracts  in  pursuance  thereof  valid,  being 
Chapter  117  of  the  Acts  of  the  General  Assembly  of  the  Com- 
monwealth of  Kentucky  for  the  year  1906." 

Be  it  enacted  by  the  General  Assembly  of  the  Common- 
wealth of  Kentucky: 

SECTION  1.  That  section  3  of  an  act  entitled,  An  act 
permitting  persons  to  combine  or  pool  their  crops  of 
wheat,  tobacco  and  other  products  and  sell  same  as  a 
whole,  and  making  contracts  in  pursuance  thereof  valid, 
approved  March  21,  1906,  being  Chapter  117  of  the  acts 
of  the  General  Assembly  of  the  Commonwealth  of  Ken- 


1  Now    questioned    under    the    14th    amendment    in    case    of    Collins    v. 
Kentucky,  pending  before  Supreme  Court  of  United  States. 


KENTUCKY.  129 

tuclry  for  the  year  1906,  be  and  the  same  is  hereby 
amended  and  re-enacted  so  as  to  read  as  follows : 

Such  persons  so  entering  into  such  an  agreement  or 
contract  as  is  set  out  in  the  foregoing  sections  are  hereby 
permitted  to  select  an  agent  or  agents  through  or  by  or 
with  whom  said  parties  so  entering  into  such  agreement 
may  classify,  grade,  store,  hold,  sell,  or  dispose  of  said 
crop,  or  any  of  them,  and  said  agent  or  agents  shall  have 
the  right  to  take,  receive,  hold,  store,  classify,  grade,  sell 
or  dispose  of  said  crop  so  placed  in  said  agreement,  for  the 
purpose  of  accomplishing  the  object  of  such  combination 
or  agreement  between  such  principals,  and  contracts  and 
agreements  entered  into  by  such  agent  or  agents  for  the 
purpose  of  classifying,  grading,  storing,  holding,  selling 
or  disposing  of  said  crop  so  combined,  united  or  pooled, 
either  in  parcel  or  as  a  whole,  are  hereby  permitted,  and 
shall  not,  because  of  any  such  combination  or  purpose  of 
such  original  agreement  of  such  principals  so  entering 
into  said  combination,  or  of  such  agent  or  agents,  be  de- 
clared illegal  or  invalid.  All  contracts  heretofore  made 
by  any  person  or  persons  for  the  purposes  set  out  in  the 
foregoing  sections  are  hereby  declared  valid,  if  otherwise 
legally  binding  on  the  parties.  To  prevent  any  breach 
or  violation  of  any  contract  made  for  the  purposes  set 
out  in  the  foregoing  sections  a  restraining  order  and  writ 
of  injunction  may  be  issued  by  proper  officer,  as  pre- 
scribed in  the  Civil  Code  of  Practice. 

For  any  breach  or  violation  of  any  contract  entered 
into  for  the  purposes  set  out  in  the  foregoing  sections,  the 
injured  party  may  recover  the  damages  sustained  by  him 
by  reason  of  such  violation  of  such  contract  of  the  person 
violating  the  same,  and  also  of  any  person  who  shall  in- 
duce or  persuade  another  to  violate  such  contract,  which 
damages  shall  include  the  reasonable  expense  and  attor- 
ney's fees  incurred  by  the  injured  party  in  prosecuting  an 
action  to  recover  such  damages,  or  to  prevent  a  violation 
of  such  contract,  if  the  party  complaining  shall  succeed 
in  doing  so,  which  may  be  recovered  in  the  same  action  or 
original  proceeding.  Said  agent  when  so  selected  as 
herein  provided  shall  have  the  sole  right  to  sell  said  crop 
so  pooled  or  combined,  and  it  shall  be  unlawful  for  any 
owner  of  such  crop  to  sell  or  dispose  of  same  and  for  any 
person  to  knowingly  purchase  the  same  without  the  writ- 
ten consent  of  such  agent,  and  upon  conviction  thereof  he 

16491—13 9 


130  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

or  the}7  shall  be  fined  in  any  sum  or  amount  not  exceed- 
ing $250.00  for  each  offense,  to  be  fixed  by  the  jury  in 
their  discretion. 

SEC.  2.  WHEREAS,  many  crops  of  tobacco  and  other 
products  have  been  combined  and  pooled  in  this  State, 
under  contract  and  agreement  entered  into  for  the  pur- 
poses set  out  in  the  above  section,  an  emergency  is  now 
declared  to  exist,  which  requires  that  this  act  should  and 
it  shall  take  effect  from  and  after  its  passage  and  ap- 
proval by  the  Governor.  (Approved  Mar.  13,  1908.) 

COURT  DECISIONS. 

Brewster  v.  Miller  et  al.,  101  Ky.,  368;  38  L.  E.  A.,  505. 

Anderson  v.  Jett,  etc.,  89  Ky.,  375. 

Commonwealth  v.  Grinstead,  108  Ky.,  59. 

Commonwealth  v.  International  Harvester  Company, 
131  Ky.,  551. 

Commonwealth  v.  International  Harvester  Company, 
131  Ky.,  571. 

Commonwealth  v.  International  Harvester  Company, 
147  Ky.,  564. 

Owen  County  Board  of  Control  v.  Brumback,  128 
Ky.,  137. 

Commonwealth  v.  Hodges,  137  Ky.,  233. 

International  Harvester  Company  v.  Commonwealth, 
137  Ky.,  551. 

International  Harvester  Company  v.  Commonwealth, 
144  Ky.,  403. 


LOUISIANA. 

STATUTES. 

Act  86,  1890:  "  That  every  contract,  combination  in  the 
form  of  trust,  or  conspiracy,  in  restraint  of  trade  or  com- 
merce or  to  fix  or  limit  the  amount  or  quantity  of  any 
article,  commodity  or  merchandise  to  be  manufactured, 
mined,  produced  or  sold  in  this  state  is  hereby  declared 
illegal. 

"  SEC.  2.  That  every  person  who  shall  make  any  such 
contract,  or  engage  in  any  such  combination  or  conspir- 
acy, shall  be  deemed  guilty  of  a  misdemeanor,  and  on 
conviction  thereof,  shall  be  punished  by  fine  not  exceed- 
ing five  thousand  dollars,  or  by  imprisonment  not  exceed- 
ing one  year,  or  by  both  of  said  punishments,  in  the  dis- 
cretion of  the  court. 

"  SEC.  3.  That  every  person  who  shall  monopolize,  or 
attempt  to  monopolize  or  combine,  or  conspire  with  any 
other  person  or  persons,  to  monopolize  any  part  of  the 
trade  or  commerce  within  the  limits  of  this  state,  shall 
be  deemed  guilty  of  a  misdemeanor,  and,  on  conviction 
thereof,  shall  be  punished  by  a  fine  not  exceeding  five 
thousand  dollars,  or  by  imprisonment  not  exceeding  one 
year,  or  by  both  said  punishments,  in  the  discretion  of 
the  court." 

Act  90  of  1892 :  "  That  after  the  passage  of  this  act  it 
shall  be  unlawful  for  any  individual,  firm,  company,  cor- 
poration or  association  to  enter  into,  continue  or  main- 
tain any  combination,  agreement  or  arrangement  of  any 
kind,  expressed  or  implied,  with  any  other  individual, 
firm,  company,  association  or  corporation,  for  any  of  the 
following  purposes:  First,  to  create  or  carry  out  restric- 
tions of  trade ;  second,  to  limit  or  reduce  the  production, 
or  increase  or  reduce  the  price  of  merchandise,  produce 
or  commodities;  third,  to  prevent  competition  in  manu- 
facture, making,  transportation,  sale  or  purchase  of  mer- 
chandise, produce  or  commodities;  fourth,  to  fix  at  any 

131 


132  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

standard  or  figure,  whereby  its  price  shall  be  in  any  man- 
ner controlled  or  established,  any  article  of  merchandise, 
produce,  commodity  or  commerce  intended  for  consump- 
tion in  this  state;  fifth,  to  make  or  enter  into  or  execute 
or  carry  out  any  contract,  obligation  or  agreement  of 
any  kind  or  description  by  which  they  shall  bind  or  have 
bound  themselves  not  to  sell,  dispose  of  or  transport  any 
article  or  commodity  or  article  of  trade,  use,  merchandise, 
commerce  or  consumption  below  a  common  standard  fig- 
ure, or  by  which  they  shall  agree  in  any  manner  to  keep 
the  price  of  such  article  at  a  fixed  or  graduated  figure, 
or  by  which  they  shall  in  any  manner  establish  or  settle 
the  price  of  any  article  or  commodity  or  transportation 
between  them  or  themselves  and  others  to  preclude  a  free 
and  unrestricted  competition  among  themselves,  or  others, 
in  the  sale  or  transportation  of  any  such  article  or  com- 
modity, or  by  which  they  shall  agree  to  pool,  combine,  or 
unite  any  interest  they  may  have  in  connection  Avith  the 
sale  or  transportation  of  any  such  article  or  commodity 
that  its  price  might  in  any  manner  be  affected. 

"  SEC.  2.  That  any  corporation  holding  a  charter  un- 
der the  laws  of  the  state  of  Louisiana  which  shall  be  con- 
victed of  a  violation  of  the  provisions  of  this  act  shall 
thereby  forfeit  its  rights  and  franchises,  and  its  cor- 
porate existence  shall  cease  and  determine,  and  it  shall 
be  the  duty  of  the  attorney-general  of  his  own  motion 
and  without  leave  or  orders  of  any  court  or  judge  to 
institute  an  action  in  the  name  of  the  state  of  Louisiana 
for  the  forfeiture  of  such  rights  and  franchises  and  the 
dissolution  of  such  corporate  existence. 

"  SEC.  3.  That  every  foreign  corporation,  or  any  cor- 
poration organized  under  or  pursuant  to  the  laws  of  any 
state,  who  shall  be  convicted  of  a  violation  of  the  pro- 
visions of  this  act  is  hereby  denied  the  right  and  pro- 
hibited from  doing  any  business  within  this  state,  and  it 
shall  be  the  duty  of  the  attorney-general  to  enforce  this 
provision  by  injunction  or  other  proceedings  in  the  name 
of  the  state  of  Louisiana. 

"  SEC.  4.  That  any  violation  of  either  or  all  the  pro- 
visions of  this  act  shall  be  and  is  hereby  declared  a  con- 
spiracy against  "trade,  and  any  person  who  may  be  or 
who  may  become  engaged  in  any  such  conspiracy  or 
take  part  therein,  or  aid  or  advise  in  its  commission,  or 
who  shall,  as  principal,  manager,  director  or  agent, 


LOUISIANA.  133 

knowingly  carry  out  any  of  the  stipulations,  purposes, 
prices,  rates  or  orders  thereunder  or  in  pursuance  thereof, 
shall  be  punished  by  fine  not  less  than  one  hundred 
dollars  nor  more  than  one  thousand  dollars,  and  by  im- 
prisonment in  the  penitentiary  not  less  than  six  months 
nor  more  than  one  year,  or  by  either  such  fine  and  im- 
prisonment, in  the  discretion  of  the  court.  It  shall  be 
the  duty  of  the  district  attorneys  in  their  respective  juris- 
dictions and  the  attorney-general  to  enforce  this  pro- 
vision, and  any  district  attorney  of  any  parish  securing 
a  conviction  under  this  provision  shall  be  entitled  to 
such  fee  or  salary  as  by  the  law  he  is  allowed  for  such 
prosecution. 

"  SEC.  ,  5.  That  in  any  indictment  for  an  offense  named 
in  this  act  it  is  sufficient  to  state  the  purposes  or  effects 
of  the  trust  or  combination,  and  that  the  accused  was  a 
member  of,  acted  with  or  in  pursuance  of  it,  without  giv- 
ing its  name  or  description,  or  how,  when  or  where  it 
was  created ;  provided,  that  no  contract  or  agreement  or 
arrangement  which  does  not  include,  or  which  cannot  be 
held  to  include,  a  stipulation  between  the  parties  to  share 
in  the  profits  of  any  such  contract,  agreement  or  arrange- 
ment, or  which  contract,  agreement  or  arrangement  does 
not  provide  for  or  does  not  contemplate  a  profit  or  pool 
to  be  divided  between  the  parties  to  such  contract,  agree- 
ment or  arrangement,  shall  be  held  or  construed  to  be  in 
violation  of  the  provisions  of  this  act, 

"  SEC.  6.  That  in  prosecutions  under  this  act,  it  shall 
not  be  necessary  to  prove  who  constitute  all  the  members 
belonging  to  the  trust  or  combination. 

"  SEC.  7.  That  any  contract  or  agreement  in  violation 
of  the  provisions  of  this  act  shall  be  absolutely  void. 

"  SEC.  8.  That  the  provisions  of  this  act  shall  not  apply 
to  agricultural  products  or  live  stock  while  in  the  hands 
of  the  producer  or  raiser;  nor  be  so  construed  as  to  effect 
any  combination  or  confederation  of  laborers  for  the  pur- 
pose of  procuring  an  increase  of  their  wages  or  redress 
of  grievances." 

ACT   1908. 

Any  person,  firm,  company,  association  or  corporation, 
foreign  or  domestic,  doing  business  in  the  state  of  Loui- 
siana, and  engaged  in  the  production,  manufacture,  or 
distribution  of  any  commodity  in  general  use,  that  shall, 


134  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

intentionally,  for  the  purpose  of  injuring  or  destroying 
the  business  of  a  competitor  in  any  locality,  discriminat- 
ing between  different  sections,  communities,  cities  or 
localities  in  the  state  of  Louisiana,  by  selling  such  com- 
modity at  a  lower  rate  in  one  section,  community,  city 
or  locality,  that  is  charged  for  such  commodity  by  said 
person,  firm,  company,  association  or  corporation  in  an- 
other section,  community,  city  or  locality  after  making 
due  allowance  for  the  difference,  if  any,  in  the  grade  or 
quality  of  such  commodity  and  in  the  actual  cost  of 
transportation  of  same  from  the  point  of  production,  if  a 
raw  product,  or  from  the  point  of  manufacture,  if  a 
manufactured  product,  shall  be  guilty  of  unfair  discrim- 
ination, which  is  hereby  prohibited  and  declared  unlaw- 
ful, and  to  be  a  misdemeanor;  and  that  all  sales  so  made 
shall  be  taken  and  considered  as  prima  facie  evidence  of 
unfair  discrimination.  (L.  1908,  Act  128,  Sec.  1.) 

Any  person,  firm,  company,  association  or  corporation 
violating  «any  of  the  provisions  of  the  preceding  section, 
any  officer,  agent  or  receiver  of  any  firm,  company,  asso- 
ciation or  corporation,  or  any  member  of  the  same,  or 
any  individual  found  guilty  of  a  violation  thereof  shall 
be  fined  not  less  than  five  hundred  dollars  ($500),  nor 
more  than  five  thousand  dollars  ($5,000),  or  be  im- 
prisoned in  the  parish  jail  for  not  less  than  one  year,  nor 
more  than  two  years,  or  both,  at  the  discretion  of  the 
court.  (L.  1908,  Act  128,  Sec.  2.) 

All  contracts  or  agreements  made  in  violation  of  any 
of  the  provisions  of  the  two  preceding  sections  shall  be 
void.  (L."  1908,  Act  128,  Sec.  3.) 

It  shall  be  the  duty  of  the  district  attorneys,  in  their 
several  judicial  districts,  throughout  the  state,  to  enforce 
the  provisions  of  the  preceding  sections  of  this  act,  by 
appropriate  actions  and  prosecutions  in  the  several  courts 
of  the  state  of  competent  criminal  jurisdiction,  and  of 
the  attorney  general,  in  all  such  cases,  when  carried  by 
appeal  or  otherwise  to  the  Supreme  Court  of  this  state, 
or  to  any  other  court  of  this  state  or  of  the  United 
States ;  and  that  it  shall  also  be  the  duty  of  the  attorney 
general  of  the  state,  whether  requested  or  directed  to  do 
so  by  the  governor  or  by  the  general  assembly  of  the 
state  or  not,  to  enforce  all  the  foregoing  provisions  of 
this  act  by  appropriate  actions  and  proceedings  of  a  civil 
nature  in  such  court  or  courts  of  the  state  as  mav  have 


LOUISIANA.  135 

jurisdiction  in  such  cases,  and  as  is  hereinafter  provided. 
(L.  1908,  Act  128,  Sec.  4.) 

If  any  complaint  be  made  to  the  secretary  of  state  that 
any  corporation,  authorized  to  do  business  in  this  state 
is  guilty  of  unfair  discrimination  within  the  terms  of 
this  act,  it  shall  be  the  duty  of  the  secretary  of  state  to 
refer  the  matter  to  the  attorney  general,  who  shall  ex- 
amine into  said  complaint,  and  if  the  facts  justify  it,  in 
his  judgment,  shall  institute  proceedings  in  the  courts 
against  such  corporation.  (L.  1908,  Act  128,  Sec.  5.) 

If  any  corporation,  foreign  or  domestic,  authorized  to 
do  business  in  this  state,  or  any  officer,  agent  or  receiver 
of  any  corporation,  is  found  guilty  of  unfair  discrimina- 
tion, as  defined  by  this  act,  it  shall  be  the  duty  of  the 
secretary  of  state  immediately  to  revoke  the  permit  or 
license  of  such  corporation  to  do  business  in  this  state. 
(L.  1908,  Act  128,  Sec.  6.) 

In  all  cases  where  a  corporation  may  have  been  con- 
victed of  the  violation  of  the  provisions  of  this  act,  and 
it  shall  continue  or  attempt  to  do  business  thereafter  in 
this  state,  it  shall  be  the  duty  of  the  attorney  general  of 
the  state,  by  a  proper  suit,  in  the  name  of  the  state,  to 
oust  such  corporation  from  all  business  of  every  kind 
and  character  in  the  state  of  Louisiana.  (L.  1908,  Act 
128,  Sec.  T.) 

The  remedies  and  penalties  provided  in  this  act  shall 
be  cumulative  to  each  other  and  to  all  other  remedies  and 
penalties  provided  by  law.  (L.  1908,  Act  128,  Sec.  8.) 

COURT  DECISIONS. 

Texas  and  Pacific  Ry.  et  al.  v.  Southern  Pacific  Ry. 
Co.,  41  La.,  970. 
John  Trisconi  v.  J.  M.  Winship  et  al.,  43  La.,  45. 


MAINE. 

STATUTES. 

It  shall  be  unlawful  for  any  firm  or  incorporated  com- 
pany, or  any  number  of  firms  or  incorporated  companies, 
or  any  unincorporated  company,  or  association  of  persons 
or  stockholders,  organized  for  the  purpose  of  manufac- 
turing, producing,  refining  or  mining  any  article  or 
product  which  enters  into  general  use  and  consumption 
by  the  people,  to  form  or  organize  any  trust,  or  to  enter 
into  any  combination  of  firms,  incorporated  or  unincor- 
porated companies,  or  association  of  stockholders,  or  to 
delegate  to  any  one  or  more  board  or  boards  of  trustees 
or  directors  the  power  to  conduct  and  direct  the  business 
of  the  whole  number  of  firms,  corporations,  companies 
or  associations  which  may  have  formed,  or  which  may 
propose  to  form  a  trust,  combination  or  association  incon- 
sistent with  the  provisions  of  this  section  and  contrary 
to  public  policy.  (R.  S.,  c.  47,  Sec.  53.) 

No  certificate  of  stock,  or  other  evidence  of  interest, 
in  any  trust,  combination  or  association,  as  named  in  the 
preceding  section,  shall  have  legal  recognition  in  any 
court  in  this  state,  and  any  deed  of  real  estate  given  by 
any  person,  firm  or  corporation,  for  the  purpose  of  be- 
coming interested  in  such  trust,  combination  or  associa- 
tion, or  any  mortgage  given  by  the  latter  to  the  seller,  as 
well  as  all  certificates  growing  out  of  such  transaction, 
shall  be  void.  (K.  S.,  c.  47,  Sec.  54.) 

Any  incorporated  company  now  operating  under  the 
laws  of  this  state,  and  which  at  the  date  of  the  passage 
of  this  act,  may  be  interested  in  any  trust,  combination 
or  association,  named  in  section  one  of  this  act,  or  any 
firm,  incorporated  or  unincorporated  company,  or  asso- 
ciation of  persons  or  stockholders,  who  shall  enter  into 
or  become  interested  in  such  trust,  combination  or  asso- 
ciation, after  the  passage  of  this  act.  shall  be  deemed 
guilty  of  a  misdemeanor,  and  be  subject  to  a  fine  of  not 
less  than  five  nor  more  than  ten  thousand  dollars:  Pro- 

137 


138  LAWS    ON    TRUSTS    AXD    MONOPOLIES. 

vided.  That  nothing  in  this  section  shall  be  so  construed 
as  to  apply  to  such  incorporated  companies  as  shall, 
within  ninety  days  from  the  date  of  the  passage  of  this 
act,  withdraw  from  and  sever  all  connections  with  such 
trust,  combination  or  association.  (R.  S.,  c.  47,  Sec.  55.) 
It  shall  be  the  duty  of  the  secretary  of  state,  as  soon 
as  may  be  after  the  passage  of  this  act,  to  forward  to  the 
president,  secretary  or  treasurer,  of  each  incorporated 
company  organized  for  the  purpose  of  manufacturing, 
producing,  refining  or  mining  any  article  or  product 
which  enters  into  general  use  and  consumption  by  the 
people,  and  doing  business  within  this  state,  a  copy  of 
this  act,  and  also  a  letter  of  inquiry  as  to  whether  said 
corporation  has  merged  all  or  any  part  of  its  business  or 
interests  in  or  with  any  trust,  combination  or  association 
of  persons  or  stockholders  as  named  in  section  one  of  this 
act,  and  to  require  an  answer,  under  oath,  of  the  presi- 
dent, secretary,  treasurer,  or  directors  of  said  company. 
a  form  of  affidavit,  together  with  questions  to  be  an- 
swered, shall  be  prescribed  by  the  secretary  of  state,  and 
forwarded  with  said  letter,  and  on  neglect  or  refusal  to 
make  answers  under  oath  to  such  questions  for  the  term 
of  ninety  days  from  the  date-  of  this  act,  the  secretary  of 
state  shall  notify  the  attorney-general,  whose  duty  it 
shall  be  forthwith  to  file  an  information  in  the  nature  of 
a  writ  of  quo  warranto,  with  the  supreme  judicial  court, 
against  said  corporation,  and  the  court  may,  upon  hear- 
ing and  proof  of  such  neglect  or  refusal,  decree  the  dis- 
solution of  said  corporation,  and  its  corporate  rights  and 
powers  shall  be  terminated.  (R.  S.,  c.  47,  Sec.  56.) 


MARYLAND. 

CONSTITUTION. 


ART.  41.  That  monopolies  are  odious,  contrary  to  the 
spirit  of  a  free  government  and  the  principles  of  com- 
merce, and  ought  not  to  be  suffered. 

189 


MASSACHUSETTS. 

STATUTES. 


1907. 


SECTION  1.  No  person,  firm,  corporation  or  association 
shall  insert  in  or  make  it  a  condition  or  provision  of 
any  sale  or  lease  of  any  tool,  implement,  appliance  or 
machinery  that  the  purchaser  or  lessee  thereof  shall  not 
buy,  lease  or  use  machinery,  tools,  implements  or  appli- 
ances or  material  or  merchandise  of  any  person,  firm, 
corporation  or  association  other  than  such  vendor,  or 
lessor;  but  this  provision  shall  not  impair  the  right,  if 
any,  of  the  vendor  or  lessor  of  any  tool,  implement, 
appliance  or  machinery  protected  by  a  lawful  patent 
right  vested  in  such  vendor  or  lessor  to  require  by  virtue 
of  such  patent  right  the  vendee  or  lessee  to  purchase  or 
lease  from  such  vendor  or  lessor  such  component  and 
constituent  parts  of  said  tool,  implement,  appliance  or 
machinery  as  the  vendee  or  lessee  may  thereafter  re- 
quire during  the  continuance  of  such  patent  right :  Pro- 
vided, that  nothing  in  this  act  shall  be  construed  to 
prohibit  the  appointment  of  agents  or  sole  agents  to  sell 
or  lease  machinery,  tools,  implements  or  appliances. 

SEC.  2.  Any  person,  firm,  corporation  or  association,  or 
the  agent  of  any  such  person,  firm,  corporation  or  associ- 
ation, that  violates  the  provisions  of  this  act  shall  be  pun- 
ished for  each  offence  by  a  fine  not  exceeding  five  thou- 
sand dollars. 

All  leases,  sales  or  agreements  therefor  hereafter  made 
in  violation  of  any  of  the  provisions  of  this  act  shall  be 
void  as  to  any  and  all  of  the  terms  or  conditions  thereof 
in  violation  of  said  provisions.  [Approved  June  1, 1907.] 


1908. 


Every  contract,  agreement,  arrangement  or  combina- 
tion in  violation  of  the  common  law  in  that  thereby  a 
monopoly  in  the  manufacture,  production  or  sale  in  this 

141 


142  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

commonwealth  of  any  article  or  commodity  in  common 
use  is  or  may  be  created,  established  or  maintained,  or 
in  that  thereby  competition  in  this  state  in  the  supply 
or  price  of  any  such  article  or  commodity  is  or  may  be 
restrained  or  prevented,  or  in  that  thereby,  for  the  pur- 
pose of  creating,  establishing  or  maintaining  a  monopoly 
within  this  state  of  the  manufacture,  production  or  sale 
of  any  such  article  or  commodity,  the  free  pursuit  in  this 
state  of  any  lawful  business,  trade  or  occupation  is  or 
may  be  restrained  or  prevented  is  hereby  declared  to  be 
against  public  policy,  illegal  and  void.  (L.  1908,  c.  454, 
Sec.  1.) 

The  attorney-general,  or,  by  his  direction,  a  district 
attorney,  may  bring  an  action  in  the  name  of  the  com- 
monwealth against  any  person,  trustee,  director,  manager, 
or  other  officer  or  agent  of  a  corporation,  or  against  a 
corporation  to  restrain  the  doing  in  this  commonwealth 
of  any  act  herein  forbidden  or  declared  to  be  illegal,  or 
any  act  in,  toward  or  for  the  making  or  consummation 
of  any  contract,  agreement,  arrangement  or  combination 
herein  prohibited,  wherever  the  same  may  have  been 
made.  The  superior  court  shall  have  jurisdiction  to  re- 
strain and  enjoin  any  act  herein  forbidden  or  declared  to 
be  illegal.  (Id.,  Sec.  2.) 

In  such  action  no  person  shall  be  excused  from  answer- 
ing any  questions  that  may  be  put  to  him,  or  from  pro- 
ducing any  books,  papers,  documents,  on  the  ground  that 
the  testimony  or  evidence,  documentary  or  otherwise,  re- 
quired of  him  may  tend  to  incriminate  him,  but  no  per- 
son shall  be  prosecuted  in  any  criminal  action  or  proceed- 
ings, or  subjected  to  any  penalty  or  forfeiture  for  or  on 
account  of  any  transaction,  matter  or  thing  concerning 
which  he  may  testify,  or  produce  evidence,  documentary 
or  otherwise,  in  any  such  action.  (Id.,  Sec.  3.) 

Nothing  in  section  one  of  this  act  shall  be  construed 
as  impairing,  repealing,  or  superseding  any  statute  of 
this  commonwealth.  (Id.,  Sec.  4.) 

1911. 

Upon  written  complaint  on  oath  of  the  complainant 
filed  in  the  supreme  judicial  court  or  in  the  superior 
court,  alleging  that  any  person,  co-partnership  or  cor- 
poration has,  in  the  county  where  such  complaint  is  filed, 
entered  into  any  contract,  agreement,  arrangement,  com- 


MASSACHUSETTS.  143 

bination  or  practice,  whereby  a  monopoly  in  the  manu- 
facture, production,  transportation  or  sale  in  this  com- 
monwealth of  any  article  or  commodity  in  common  use 
is  or  may  be  created,  established  or  maintained;  or 
whereby  competition  in  this  commonwealth  in  the  supply 
or  price  of  &ny  such  article  or  commodity  is  or  may  be 
restrained  or  prevented;  or  Avhereby  for  the  purpose  of 
creating,  establishing  or  maintaining  a  monopoly  within 
this  commonwealth  of  the  manufacture,  production, 
transportation  or  sale  of  any  such  article  or  commodity, 
the  free  pursuit  in  this  state  of  any  lawful  business,  trade 
or  occupation  is  or  may  be  restrained  or  prevented;  or 
whereby  the  price  of  any  article  or  commodity  in  com- 
mon use  is  or  may  be  unduly  enhanced  within  this  com- 
monwealth ;  the  court  shall  hear  on  oath  the  complainant 
and  any  witnesses  produced  by  him.  If  it  appears  to  the 
court  that  such  contract,  agreement,  arrangement,  com- 
bination or  practice  exists,  the  court  shall  issue  an  order 
of  notice  to  the  respondents  to  appear  and  show  cause 
why  the  court  should  not  appoint  a  master  to  hear  and 
to  make  report  on  said  complaint ;  and  thereafter,  if  such 
cause  be  not  shown,  the  court  shall  appoint  a  master  who 
shall,  in  accordance  with  the  established  practice  and 
rules  in  equity,  hear  the  complainant  and  the  respondents 
and  their  evidence  upon  the  allegations  of  said  com- 
plaint; and  upon  motion  of  the  complainant,  other  per- 
sons, co-partnerships  or  corporations,  within  the  juris- 
diction of  the  court  and  appearing  to  the  court  to  be 
necessary  parties  to  the  full  examination  of  the  allega- 
tions of  said  complaint,  may  upon  proper  notice  be  cited 
to  appear  as  parties  respondent.  After  such  hearing  the 
master  shall  make  and  file  his  report,  and  said  parties 
may  present  their  objections  and  exceptions  thereto  and 
prosecute  the  same  in  accordance  with  the  rules  of  pro- 
cedure in  equity.  Said  final  report  of  the  master  shall 
be  filed  by  him  within  thirty  days  after  the  close  of  the 
hearing,  unless  further  time  is  allowed  by  order  of  the 
court.  (L.  1911,  c.  503.  Sec.  1.) 

Masters  may  append  to  their  reports  made  in  accord- 
ance with  the  provisions  of  the  preceding  section,  such 
recommendations  to  the  parties  as  may  be  germane  to. 
and  warranted  by  their  findings  of  fact  or  rulings  of  law, 
and  as  may  tend  to  remove  restraint  or  to  prevent  any 
ground  of  complaint  alleged  in  said  complaint  and  found 
by  the  master  to  be  proven;  but  such  recommendations 


144  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

may,  upon  motion  of  any  party,  and  upon  order  of  the 
court,  be  disaffirmed  and  expunged  from  the  records  of 
the  case.  The  report  of  the  master,  if  affirmed  by  the 
court,  shall  be  transmitted  by  the  clerk  to  the  attorney- 
general,  who  shall  forthwith  cause  such  further  proceed- 
ings, either  civil  or  criminal,  to  be  instituted  as  such 
report  may  warrant.  (Id.,  Sec.  2.) 

Masters  appointed  under  the  provisions  of  this  act 
shall  have  all  the  powers  conferred  upon  masters  in 
equity  procedure.  Their  fees  shall  be  fixed  by  the  court 
and  paid  out  of  the  treasury  of  the  commonwealth. 
Upon  request  of  a  master  appointed  under  the  provisions 
of  this  act  a  room  or  rooms  for  hearings  shall  be  pro- 
vided in  the  state  house,  if  the  cause  be  pending  in  the 
county  of  Suffolk,  Middlesex  or  Norfolk ;  if  elsewhere,  in 
some  county  court  house  within  the  county  where  the 
cause  is  pending.  Upon  approval  by  the  court,  such  mas- 
ters may  employ  suitable  clerical  or  stenographic  as- 
sistants to  report  the  evidence  taken  and  the  findings. 
Such  assistants  shall  be  paid  out  of  the  treasury  of  the 
commonwealth.  (Id.,  Sec.  3.) 

At  any  hearing,  pursuant  to  the  provisions  of  this  act, 
no  person  shall  be  excused  from  answering  any  questions 
material  to  the  proof  of  the  allegations  of  the  complaint, 
or  from  producing  any  books,  papers  or  documents  which 
are  so  material,  on  the  ground  that  the  testimony  or  evi- 
dence, documentary  or  otherwise,  so  required  of  him, 
tends  to  incriminate  him;  but  no  person  shall  be  prose- 
cuted in  any  criminal  proceeding,  or  subjected  to  any 
penalty  or  forfeiture  for  or  on  account  of  any  transac- 
tion, matter  or  thing  concerning  which  he  may  testify 
or  produce  evidence,  documentary  or  otherwise,  in  any 
such  hearing.  Upon  objection  of  a  party,  no  book,  paper 
or  document,  or  part  thereof,  produced  by  him  at  the  re- 
quest of  the  other  party  to  the  action  shall,  be  examined 
by  the  party  making  the  request  or  his  attorney,  or  of- 
fered in  evidence,  unless  it  is  so  ordered  by  the  master, 
after  examination  thereof  and  a  hearing  thereon,  and  a 
ruling  by  the  master  that  such  evidence  is  material  and 
:ompetent.  (Id.,  Sec.  4.) 

1912. 

Any  person,  firm,  association,  or  corporation,  foreign 
•  >r  domestic,  doing  business  in  the  commonwealth  and  en- 


MASSACHUSETTS.  145 

gaged  in  the  production,  manufacture  or  distribution  of 
any  commodity  in  general  use,  that  shall  maliciously,  or 
for  the  purpose  of  destroying  the  business  of  a  competitor 
and  of  creating  a  monopoly  in  any  locality,  discriminate 
between  different  sections,  communities,  towns  or  cities 
of  this  commonwealth  or  between  purchasers  by  selling 
such  commodity  at  a  lower  rate  for  such  purpose  in  one 
section,  community,  town  or  city  than  is  charged  for  such 
commodity  by  the  vendor  in  another  section,  community, 
town  or  city  in  the  commonwealth,  after  making  due  al- 
lowance for  the  difference,  if  any,  in  the  grade  or  quality 
and  in  the  cost  of  transportation,  shall  be  deemed  guilty 
of  unfair  discrimination,  which  is  hereby  prohibited  and 
declared  unlawful.  (L.  1912,  c.  651,  Sec.  1.) 

It  shall  be  unlawful  for  any  person,  firm,  association 
or  corporation  to  combine  with  any  other  person,  firm, 
association  or  corporation  for  the  purpose  of  destroying 
the  trade  or  business  of  an}7  person,  firm,  association  or 
corporation,  engaged  in  selling  goods  or  commodities  and 
of  creating  a  monopoly  within  this  commonwealth,  and 
any  such  combination  is  hereby  prohibited  and  declared 
unlawful.  (Id.,  Sec.  2.) 

Any  person,  firm,  association  or  corporation  found 
guilty  of  violating  any  provision  of  this  act,  if  an  indi- 
vidual, shall  be  punished  by  a  fine  of  not  less  than  five 
hundred  dollars  or  more  than  five  thousand  dollars,  or  by 
imprisonment  for  not  less  than  one  month  or  more  than 
one  year,  or  by  both  such  fine  and  imprisonment ;  and  if 
the  offender  is  a  corporation,  then  by  a  fine  as  aforesaid. 
(Id.,  Sec.  3.) 

Whoever,  in  his  individual  capacity,  or  acting  in  behalf 
of  any  firm,  association  or  corporation,  for  the  purpose 
of  evading  any  provision  of  this  act,  shall  appoint  agents, 
secure  or  hold  the  control  of  corporate  stock,  or  by  agree- 
ment with  any  other  person,  firm,  association  or  corpora- 
tion cause  any  of  the  commodities  mentioned  in  section 
one  to  be  sold  for  the  purpose  of  such  evasion  or  attempt 
to  evade,  shall  be  punished  by  imprisonment  in  the  state 
prison  for  not  less  than  six  months  or  not  more  than  five 
years,  if  an  individual;  and  if  any  of  the  acts  specified 
in  this  section  are  done  by  a  corporation,  then  the 
directors,  stockholders  or  agents  authorizing  such  evasion 
or  discrimination  shall  each  be  held  guilty  thereof,  and 
shall  be  punished  in  the  manner  provided  in  this  section 
for  individuals.  (Id.,  Sec.  4.) 
16491—13 10 


146  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

All  contracts  or  agreements  made  in  violation  of  any 
provision  of  this  act  shall  be  void.  (Id.,  Sec.  5.) 

It  shall  be  the  duty  of  the  district  attorneys,  in  their 
districts,  and  of  the  attorney-general,  to  enforce  the  pro- 
visions of  this  act  by  appropriate  actions  in  courts  of 
competent  jurisdiction,  but  nothing  herein  shall  limit  the 
right  of  any  court  to  issue  warrants  and  make  commit- 
ments to  await  the  action  of  the  grand  jury  under  this  act 
in  the  case  of  crimes  under  the  common  law,  and  such 
power  is  hereby  given  to  the  courts  of  the  commonwealth. 
(Id.,  Sec.  6.) 

If  complaint  shall  be  made  to  the  secretary  of  the 
commonwealth  that  any  person,  firm,  association  or  cor- 
poration authorized  to  do  business  in  this  commonwealth 
is  guilty  of  any  violation  of  this  act,  it  shall  be  the  duty 
of  the  secretary  of  the  commonwealth  to  refer  the  matter 
to  the  attorney-general,  who  shall,  if  the  facts  justify  it 
in  his  judgment,  institute  proceedings  in  the  courts 
against  such  persons,  firm,  association  or  corporation. 
(Id.,  Sec.  T.) 

If  any  corporation,  foreign  or  domestic,  authorized  to 
do  business  in  this  commonwealth  is  found  guilty  of  any 
violation  of  this  act,  such  finding  shall  cause  a  forfeiture 
of  all  the  privileges  and  rights  conferred  upon  the  cor- 
poration by  general  or  special  law  of  this  commonwealth 
and  shall  bar  its  right  to  do  business  in  this  common- 
wealth. (Id.,  Sec.  8.) 

If  any  corporation,  after  having  been  found  guilty  of 
any  violation  of  this  act,  shall  continue  or  attempt  to  do 
business  in  this  commonwealth,  it  shall  be  the  duty  of 
the  attorney-general  by  a  proper  action  in  the  name  of 
the  commonwealth  to  oust  such  corporation  from  all 
business  of  every  kind  and  character  in  this  common- 
wealth. (Id.,  Sec.  9.) 

Nothing  in  this  act  shall  be  construed  as  repealing  any 
other  act,  or  part  of  an  act,  except  such  acts  or  parts  of 
acts,  if  any  there  be,  as  are  inconsistent  herewith.  (Id., 
Sec/ 10.) 

[Chap.  709.] 

AN  ACT  To  enlarge^the  powers  and  duties  of  the  attorney-general. 
SECTION  1.  It  shall  be  the  duty  of  the  attorney-general, 
and  he  is  hereby  authorized,  to  take  cognizance  of  all  vio- 
lations of  law  or  of  orders  of  courts,  tribunals  or  com- 


MASSACHUSETTS.  147 

missions  affecting  the  general  welfare  of  the  people,  in- 
cluding combinations,  agreements  and  unlawful  practices 
in  restraint  of  trade  or  for  the  suppression  of  competition, 
or  for  the  undue  enhancement  of  the  price  of  articles  or 
commodities  in  common  use,  and  to  institute  or  cause  to 
be  instituted  such  criminal  or  civil  proceedings  before  the 
appropriate  state  and  federal  courts,  tribunals  and  com- 
missions as  the  attorney-general  may  deem  to  be  for  the 
interest  of  the  public,  and  to  investigate  all  matters 'in 
which  he  has  reason  to  believe  that  there  has  been  such 
violation.  To  carry  out  the  purposes  of  this  act  he  may 
appoint  such  assistant  or  assistants  as  he  may  deem  neces- 
sary to  act  for  him  under  his  direction,  and,  with  the  ap- 
proval of  the  governor  and  council,  he  shall  fix  their 
compensation.  In  all  criminal  proceedings  instituted  un- 
der this  act  the  attorney -general  may  require  district 
attorneys  to  assist  him  and  to  act  for  him  in  their  respec- 
tive districts,  and  in  all  matters  so  referred  to  them  the 
district  attorneys  shall  be  under  the  jurisdiction  and  di- 
rection of  the  attorney-general. 

SECTION  2.  To  carry  out  the  provisions  of  this  act  the 
attorney-general,  with  the  consent  of  the  governor  and 
council,  may  expend  a  sum  not  exceeding  five  thousand 
dollars  from  the  treasury  of  the  commonwealth. 

SECTION  3.  This  act  shall  take  effect  upon  its  passage. 

Approved  May  28, 1913. 

COURT    DECISIONS. 

Gloucester  Isinglass  and  Glue  Co.  v.  Russia  Cement 
Co.,  154  Mass.,  92. 

Opinion  of  the  Justices  on  the  law  of  1912,  211  Mass., 
620. 

United  Shoe  Machinery  Co.  v.  La  Chapelle,  212  Mass., 
467. 


MICHIGAN. 

CONSTITUTION. 

Xo  railroad  corporation  shall  consolidate  its  stock, 
property,  or  franchises,  with  any  other  railroad  corpora- 
tion owning  a  parallel  or  competing  line ;  and  in  no  case 
shall  any  consolidation  take  place  except  upon  public 
notice  given  at  least  sixty  days  to  all  stockholders,  in 
such  manner  as  shall  be  provided  by  law. 

STATUTES. 
ANTI-TRUST  LAW  OF  1899. 

SECTION  1.  That  a  trust  is  a  combination  of  capital, 
skill  or  arts  by  two  or  more  persons,  firms,  partnerships, 
corporations  or  associations  of  persons,  or  of  any  two  or 
more  of  them,  for  either,  any  or  all  of  the  following  pur- 
poses : 

1.  To  create  or  carry  out  restrictions  in  trade  or  com- 
merce ; 

2.  To  limit  or  reduce  the  production,  or  increase  or 
reduce  the  price  of  merchandise  or  any  commodity ; 

3.  To  prevent  competition  in  manufacturing,  making, 
transportation,  sale  or  purchase  of  merchandise,  produce 
or  any  commodity; 

4.  To  fix  at  any  standard  or  figure,  whereby  its  price  to 
the  public  or  consumer  shall  be  in  any  manner  controlled 
or  established,  any  article  or  commodity  of  merchandise, 
produce  or  commerce  intended  for  sale,  barter,  use  or  con- 
sumption in  this  state; 

5.  It  shall  hereafter  be  unlawful  for  two  or  more 
persons,  firms,  partnerships,  corporations  or  associations 
of  persons,  or  of  any  two  or  more  of  them,  to  make  or 
enter  into  or  execute  or  carry  out  any  contracts,  obliga- 
tions or  agreements  of  any  kind  or  description,  by  which 
they  shall  bind  or  have  bound  themselves  not  to  sell,  dis- 
pose of  or  transport  any  article  or  any  commodity  or  any 

149 


150  LAWS   ON    TKUSTS   AND   MONOPOLIES. 

article  of  trade,  use,  merchandise,  commerce  or  consump- 
tion below  a  common  standard  figure  or  fixed  value,  or 
by  which  they  shall  agree  in  any  manner  to  keep  the 
price  of  such  article,  commodity  or  transportation  at  a 
fixed  or  graduated  figure,  or  by  which  they  shall  in  any 
manner  establish  or  settle  the  price  of  any  article,  com- 
modity or  transportation  between  them  or  themselves  and 
others,  so  as  to  directly  or  indirectly  preclude  a  free  and 
unrestricted  competition  among  themselves,  or  any  pur- 
chasers or  consumers,  in  the  sale  or  transportation  of  any 
such  article  or  commodity,  or  by  which  they  shall  agree  to 
pool,  combine  or  directly  or  indirectly  unite  any  interests 
that  they  may  have  connected  with  the  sale  or  transporta- 
tion of  any  such  article  or  commodity,  that  its  price  might 
in  any  manner  be  affected.  Every  such  trust  as  is  defined 
herein  is  declared  to  be  unlawful,  against  public  policy 
and  void. 

SEC.  2.  For  a  violation  of  any  of  the  provisions  of  this 
act  by  any  corporation  or  association  mentioned  herein, 
it  shall  be  the  duty  of  the  attorney-general,  or  the  prose- 
cuting attorney  of  the  proper  county,  to  institute  proper 
suits  or  quo  warranto  proceedings  in  the  court  of  compe- 
tent jurisdiction  in  any  of  the  county  seats  in  the  state 
where  such  corporation  or  association  exists  or  does  busi- 
ness, or  may  have  a  domicile.  And  when  such  suit  is  in- 
stituted by  the  attorney-general  in  quo  warranto,  he  may 
also  begin  any  such  suit  in  the  supreme  court  of  the  state, 
or  the  circuit  court  of  Ingham,  Kent  or  Wayne  counties. 
for  the  forfeiture  of  its  charter  rights,  franchises  or 
privileges  and  powers  exercised  by  such  corporation  or 
association,  and  for  the  dissolution  of  tl>e  same  under  the 
general  statutes  of  the  state. 

SEC.  3.  Every  foreign  corporation,  as  well  as  any  for- 
eign association,  exercising  any  of  the  powers,  franchises 
or  functions  of  a  corporation  in  this  state,  violating  any 
of  the  provisions  of  this  act,  is  hereby  denied  the  right 
and  prohibited  from  doing  any  business  in  this  state,  and 
it  shall  be  the  duty  of  the  attorney-general .  to  enforce 
this  provision  by  bringing  proper  proceedings  in  quo 
warranto  in  the  supreme  court,  or  the  circuit  court  of  the 
county  in  which  'defendant  resides  or  does  business,  or 
other  proper  proceedings  by  injunction  or  otherwise. 
The  secretary  of  state  shall  be  authorized  to  revoke  the 
certificate  of  any  such  corporation  or  association,  hereto- 
fore authorized  by  him  to  do  business  in  this  state. 


MICHIGAX.  151 

SEC.  4.  \ny  violation  of  either  or  all  of  the  provisions 
of  this  act  shall  be  and  is  hereby  declared  a  conspiracy 
against  trade,  and  any  person  who  may  become  engaged 
in  any  such  conspiracy  or  take  part  therein,  or  aid  or  ad- 
vise in  its  commission,  or  who  shall,  as  principal,  mana- 
ger, director,  agent,  servant  or  employer,  or  in  any  other 
capacity,  knowingly  carry  out  any  of  the  stipulations, 
purposes,  prices,  rates,  or  furnish  any  information  to 
assist  in  carrying  out  such  purposes,  or  orders  thereunder 
or  in  pursuance  thereof,  shall  be  punished  by  a  fine  of  not 
less  than  fifty  dollars  nor  more  than  five  thousand  dollars, 
or  be  imprisoned  not  less  than  six  months  nor  more  than 
one  year,  or  by  both  such  fine  and  imprisonment.  Each 
clay's  violation  of  this  provision  shall  constitute  a  sepa- 
rate offense. 

SEC.  5.  In  any  indictment  for  any  offense  named  in 
this  act,  it  is  sufficient  to  state  the  purpose  or  effects  of 
the  trust  or  combination,  and  that  the  accused  is  a  mem- 
ber of,  acted  with  or  in  pursuance  of  it,  or  aided  or  as- 
sisted in  carrying  out  its  purposes,  without  giving  its 
name  or  description,  or  how,  when  and  where  it  was 
created. 

SEC.  6.  In  prosecutions  under  this  act,  it  shall  be  suffi- 
cient to  prove  that  a  trust  or  combination,  as  defined 
herein,  exists,  and  that  the  defendant  belonged  to  it,  or 
acted  for  or  in  connection  with  it,  without  proving  all  the 
members  belonging  to  it,  or  proving  or  producing  any 
article  of  agreement,  or  any  written  instrument  on  which- 
it  may  have  been  based ;  or  that  it  was  evidenced  by  any 
written  instrument  at  all.  The  character  of  the  trust  or 
combination  alleged  may  be  established  by  proof  of  its 
general  reputation  as  such. 

SEC.  7.  Each  and  every  firm,  person,  partnership,  cor- 
poration or  association  of  persons,  who  shall  in  any  man- 
ner violate  any  of  the  provisions  of  this  act,  shall  for 
each  and  every  day  that  such  violation  shall  be  committed 
or  continued,  after  due  notice  given  by  the  attorney-gen- 
eral or  any  prosecuting  attorney,  forfeit  and  pay  the  sum 
of  fifty  dollars,  which  may  be  recovered  in  the  name  of 
the  state,  in  any  county  where  the  offense  is  committed,  or 
where  either  of  the  offenders  reside.  And  it  shall  be  the 
duty  of  the  attorney-general,  or  the  prosecuting  attorney 
of  any  county  on  the  order  of  the  attorney-general,  to 
prosecute  for  the  recovery  of  the  same.  When  the  action 


152  LAWS   ON    TKUSTS   AND   MONOPOLIES. 

is  prosecuted  by  the  attorney-general  against  a  corpo- 
ration or  association  of  persons,  he  may  begin  the  action 
in  the  circuit  court  of  the  county  in  which  defendant  re- 
sides or  does  business. 

SEC.  8.  That  any  contract  or  agreement  in  violation  of 
the  provisions  of  this  act  shall  be  absolutely  void  and  not 
enforceable  either  in  law  or  equity. 

SEC.  9.  That  the  provisions  hereof  shall  be  held  cumu- 
lative of  each  other  and  all  other  laws  in  any  way  affect- 
ing them  now  in  force  in  this  state. 

SEC.  10.  It  shall  not  be  lawful  for  any  person,  partner- 
ship, association  or  corporation,  or  any  agent  thereof,  to 
issue  or  to  own  trust  certificates,  or  for  any  person,  part- 
nership, association  or  corporation,  agent,  officer  or  em- 
ployee, or  the  directors  or  stockholders  of  any  corporation, 
to  enter  into  any  combination,  contract  or  agreement 
with  any  person  or  persons,  corporation  or  corporations, 
or  with  any  stockholder  or  director  thereof,  the  purpose 
and  effect  of  which  combination,  contract  or  agreement 
shall  be  to  place  the  management  or  control  of  such  com- 
bination or  combinations,  or  the  manufactured  product 
thereof,  in  the  hands  of  any  trustee  or  trustees  with  the 
intent  to  limit  or  fix  the  price  or  lessen  the  production 
and  sale  of  any  article  of  commerce,  use  or  consumption, 
or  to  prevent,  restrict  or  diminish  the  manufacture  or 
output  of  any  such  article,  and  any  person,  partnership, 
association  or  corporation  that  shall  enter  into  any  such 
combination,  contract  or  agreement  for  the  purpose  afore- 
said shall  be  deemed  guilty  of  a  misdemeanor,  and  on 
conviction  thereof  shall  be  punished  by  a  fine  not  less  than 
fifty  dollars,  nor  more  than  one  thousand  dollars. 

SEC.  11.  In  addition  to  the  criminal  and  civil  penalties 
herein  provided,  any  person  who  shall  be  injured  in  his 
business  or  property  by  any  other  person  or  corporation 
or  association  or  partnership,  by  reason  of  anything  for- 
bidden or  declared  to  be  unlawful  by  this  act,  may  sue 
therefor  in  any  court  having  jurisdiction  thereof  in  the 
county  where  the  defendant  resides  or  is  found,  or  any 
agent  resides  or  is  foiind,  or  where  service  may  be  ob- 
tained, without  respect  to  the  amount  in  controversy, 
and  to  recover  twofold  the  damages  by  him  sustained, 
and  the  costs  of  suit.  Whenever  it  shall  appear  to  the 
court,  before  which  any  proceedings  under  this  act  may 
be  pending,  that  the  ends  of  justice  require  that  other 
parties  shall  be  brought  before  the  court,  the  court  may 


MICHIGAN.  153 

cause  them  to  be  made  parties  defendant  and  summoned, 
whether  they  reside  in  the  county  where  such  action  is 
pending  or  not. 

SEC.  lla.  No  person  shall  be  excused  from  attending 
and  testifying,  or  from  producing  books,  papers,  con- 
tracts, agreements  and  documents  in  any  cause,  suit  or 
proceeding,  civil,  criminal  or  otherwise,  based  upon  or 
growing  out  of  any  alleged  violation  of  any  of  the  pro- 
visions of  this  act,  or  of  any  act  amendatory  or  declara- 
tory hereof,  or  supplemental  hereto,  in  any  court  of  com- 
petent jurisdiction,  on  the  ground  or  for  the  reason  that 
the  testimony  or  evidence,  documentary  or  otherwise,  re- 
quired of  him,  may  tend  to  criminate  him  or  subject  him 
to  fine,  punishment,  penalty  or  forfeiture.  The  attend- 
ance and  testimony  of  such  persons  in  such  cases  and  the 
production  of  such  books,  papers,  contracts,  agreement 
and  documents,  may  be  enforced  in  the  same  manner  as 
in  any  other  cause,  suit  or  proceeding.  But  no  person 
shall  be  prosecuted  or  subjected  to  any  fine,  imprisonment, 
penalty  or  forfeiture  for  or  on  account  of  any  matter  or 
thing  concerning  which  he  may  testify,  or  produce  evi- 
dence, documentary  or  otherwise,  in  any  such  case,  suit 
or  proceeding.  No  testimony  so  given  by  him  shall  in 
any  prosecution  be  used  as  evidence,  either  directly  or  in- 
directly, against  him;  provided,  that  immunity  shall  ex- 
tend only  to  a  natural  person  who  in  obedience  to  a  sub- 
poena gives  testimony  under  oath,  or  produces  evidence, 
documentary  or  otherwise,  under  oath ;  provided  further, 
that  no  person  so  testifying  shall  be  exempt  from  prose- 
cution and  punishment  for  perjury  committed  in  so  testi- 
fying. (Added,  Public  Acts  1911,  No.  2.) 

SEC.  12.  The  word  "  person  "  or  "  persons,"  whenever 
used  in  this  act,  shall  be  deemed  to  include  corporations, 
partnerships  and  associations  existing  under  or  author- 
ized by  the  laws  of  the  state  of  Michigan,  or  any  other 
state,  or  any  foreign  country. 

SEC.  13.  All  acts  or  parts  of  acts  contravening  the  pro- 
visions of  this  act  are  hereby  repealed.  (P.  A.  1899,  No. 
255.) 

ANTI-TRUST  LAW  OF  JUNE  16,   1905. 

SECTION  1.  That  all  contracts,  understandings,  and 
agreements,  made  or  entered  into  by  and  between  parties 
capable  of  making  a  valid  contract,  the  purpose  or  intent 
of  which  is  to  prohibit,  restrict,  limit,  control,  or  regu- 
late the  sale  of  any  article  of  machinery,  tools,  imple- 


154  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

ments,  vehicles,  or  appliances  designed  to  be  used  in  any 
branch  of  productive  industry,  or  to  enhance  or  control 
or  regulate  the  price  thereof;  or  in  any  manner  to  re- 
strict, limit,  regulate  or  destroy  free  and  unlimited  com- 
petition in  the  sale  thereof,  shall  be  deemed  illegal  and 
void  as  in  restraint  of  trade;  provided,  that  nothing  in 
this  act  shall  be  construed  to  impair  or  invalidate  agree- 
ments or  contracts  known  to  the  common  law  and  in 
equity  as  those  relating  to  good  will  of  trade. 

SEC.  2.  Contracts,  understandings,  and  agreements  of 
the  following  nature,  whether  written  or  oral,  are  hereby 
declared  to  be  illegal  and  void  under  the  provisions  of 
section  1  of  this  act : 

First.  Contracts  compelling  and  requiring  that  any 
particular  make  or  brand  of  any  article  of  machinery, 
tools,  implements,  vehicles,  or  appliances  designed  to  be 
used  in  any  branch  of  productive  industry,  shall  be  dealt 
in  or  sold,  by  either  party  to  such  contract,  to  the  exclu- 
sion of  all  other  makes  or  brands  of  such  article  or 
articles. 

Second.  Contracts  providing  for  the  exclusive  sale  of 
certain  makes  or  brands  of  manufactured  articles  of  ma- 
chinery, tools,  implements,  vehicles,  or  appliances  de- 
signed to  be  used  in  any  branch  of  productive  industry, 
and  stipulating  certain  sums  to  be  paid  as  liquidated 
damages  to  either  party  for  every  article  so  sold  of  other 
than  the  specified  make  or  brand. 

SEC.  3.  Any  person  making  or  entering  into  any  con- 
tract, understanding,  or  agreement  made  illegal  by  the 
terms  of  this  act,  or  who  shall  do  any  act  in  pursuance 
of  carrying  the  same  into  effect  in  whole  or  in  part,  shall 
be  deemed  guilty  of  a  misdemeanor,  and  shall,  upon 
conviction,  be  punished  by  a  fine  of  not  less  than  ten 
nor  more  than  one  hundred  dollars,  or  by  imprisonment 
in  the  county  jail  not  more  than  ninety  days,  or  by  both 
such  fine  and  imprisonment  at  the  discretion  of  the  court. 

SEC.  4.  Any  partnership  limited,  or  corporation,  or- 
ganized under  the  laws  of  this  state,  or  authorized  to 
carry  on  business  in  this  state,  which  shall  make,  execute 
or  enter  into  any  contract,  understanding  or  agreement 
made  illegal  under,  the  terms  of  this  act,  or  shall  do  any 
act  in  pursuance  of  carrying  the  same  into  effect  in 
whole  or  in  part,  shall  be  deemed  to  be  guilty  of  a  mis- 
user  and  shall  forfeit  its  charter  and  all  rights  there- 
under. 


MICHIGAN.  155 

SEC.  5.  It  shall  be  the  duty  of  the  attorney-general 
to  file  an  information  in  the  nature  of  quo  warranto, 
upon  his  own  relation,  or  the  relation  of  any  person,  on 
leave  granted,  against  any  corporate  body  whenever  it 
shall  violate  any  of  the  provisions  of  this  act. 

SEC.  6.  Any  person  who  shall  be  injured  in  his  busi- 
ness or  property,  through  the  making  or  operating  of 
any  contract,  understanding  or  agreement,  made  in  vio- 
lation of  this  act,  shall  have  a  right  of  action  against 
the  parties  to  such  contract,  understanding  or  agreement 
for  all  damages  sustained  by  him  in  consequence  thereof, 
and  may  recover  the  same  in  any  court  of  competent 
jurisdiction.  (P.  A.,  1905,  No.  229.) 

ANTI-TRUST  LAW  OF  JUNE    20,    1905. 

SECTION  1.  All  agreements  and  contracts  by  which  any 
person,  copartnership  or  corporation  promises  or  agrees 
not  to  engage  in  any  avocation,  employment,  pursuit, 
trade,  profession,  or  business,  whether  reasonable  or  un- 
reasonable, partial  or  general,  limited  or  unlimited,  are 
hereby  declared  to  be  against  public  policy  and  illegal 
and  void. 

SEC.  2.  All  combinations  of  persons,  copartnerships, 
or  corporations  made  and  entered  into  for  the  purpose 
and  with  the  intent  of  establishing  and  maintaining  or 
of  attempting  to  establish  and  maintain  a  monopoly  of 
any  trade,  pursuit,  avocation,  profession,  or  business,  are 
hereby  declared  to  be  against  public  policy  and  illegal 
and  void. 

SEC.  3.  Any  corporation  organized  under  the  laws  of 
this  State  for  the  purpose  of  establishing  and  maintain- 
ing, or  attempting  to  establish  or  maintain,  any  combi- 
nation of  persons,  copartnerships  or  corporations  with 
intent  to  establish  and  maintain  or  of  attempting  to  es- 
tablish and  maintain  a  monopoly  of  any  trade,  pursuit, 
avocation,  profession,  or  business,  is  hereby  declared  to 
be  against  public  policy  and  illegal  and  void. 

SEC.  4.  Any  foreign  corporation  organized  for  the  pur- 
pose and  with  the  intent  of  establishing  and  maintain- 
ing or  of  attempting  to  establish  and  maintain  a  monop- 
oly of  any  trade,  pursuit,  avocation,  profession,  or  busi- 
ness, is  hereby  prohibited  from  doing  business  in  this 
state,  and  any  permission  or  authority  heretofore  ob- 
tained by  any  such  corporation  to  do  business  in  this 
state  is  hereby  declared  to  be  illegal  and  void. 


150  LAWS    OX    TRUSTS   AXD    MONOPOLIES. 

SEC.  5.  This  act  shall  apply  to  agreements,  contracts, 
and  combinations  in  restraint  of  trade  or  commerce  here- 
tofore entered  into  or  made,  and  which  are  sought  to  be 
enforced  or  maintained  after  this  act  takes  effect;  and  all 
contracts  and  agreements  in  violation  of  this  act  hereto- 
fore made,  expressly  or  impliedly,  continuing  in  force 
after  this  act  takes  effect,  are  hereby  declared  to  be 
against  public  policy  and  illegal  and  void. 

SEC.  6.  This  act  shall  not  apply  to  any  contract  men- 
tioned in  this  act  nor  in  restraint  of  trade,  where  the  only 
object  of  the  restraint  imposed  by  the  contract  is  to  pro- 
tect the  vendee  or  transferee  of  a  trade,  pursuit,  avo- 
cation, profession,  or  business,  or  the  good  will  thereof, 
sold  and  transferred  for  a  valuable  consideration  in 
good  faith  and  without  any  intent  to  create,  build  up, 
establish,  or  maintain  a  monopoly. 

SEC.  7.  This  act 'is  declared  to  be  supplementary  to, 
and  declaratory  of.  and  in  addition  to  Act  Xo.  255  of  the 
Public  Acts  of  1899,  p.  409.  (P.  A.,  1905,  Xo.  329.) 

[Xo.  135.] 

AN  ACT  To  prevent  unfair  commercial  discrimination  between 
different  localities  for  ilie  purpose  of  ruining  the  business  of  a 
competitor. 

The  People  of  the  State  of  Michigan  enact: 

SECTION  1.  Any  person,  firm,  company,  association  or 
corporation,  foreign  or  domestic,  doing  business  in  the 
State,  and  engaged  in  the  production,  manufacture  or 
distribution  of  any  petroleum  products,  that  shall  inten- 
tionally, for  the  purpose  of  destroying  the  business  of  a 
competitor  in  any  locality,  discriminate  between  different 
sections,  communities  or  cities  of  this  State,  by  selling 
such  commodity  at  a  lower  rate  in  one  section,  community 
or  city,  than  is  charged  for  said  commodity  by  said  party 
in  another  section,  community  or  city,  after  making  due 
allowance  for  the  difference,  if  any,  in  the  grade  or  qual- 
ity and  in  the  actual  cost  of  transportation  from  the 
point  of  production,  if  a  raw  product,  or  from  the  point 
of  manufacture,  if  a  manufactured  product,  shall  be 
deemed  guilty  of  unfair  discrimination,  which  is  hereby 
prohibited  and  declared  unlawful. 

SEC.  2.  Any  person,  firm,  company,  association  or  cor- 
poration violating  any  of  the  provisions  of  the  preceding 
section,  and  any  officer,  agent  or  receiver  of  any  firm, 
company,  association  or  corporation,  or  any  member  of 


MICHIGAN,  157 

the  same,  or  any  individual  found  guilty  of  a  violation 
thereof,  shall  be  fined  not  less  than  five  hundred  dollars 
nor  more  than  five  thousand  dollars  or  be  imprisoned  in 
the  county  jail  not  to  exceed  one  }7ear,  or  suffer  both 
penalties. 

SEC.  3.  All  contracts  or  agreements  made  in  violation 
of  any  of  the  provisions  of  the  two  preceding  sections 
shall  be  void. 

SEC.  4.  It  shall  be  the  duty  of  the  county  prosecuting 
attorneys  in  their  counties,  and  the  Attorney  General  of 
the  State,  to  enforce  the  pro  visions,  of  the  preceding  sec- 
tions of  this  act  by  appropriate  actions  in  courts  of 
competent  jurisdiction. 

SEC.  5.  If  complaint  shall  be  made  to  the  Secretary  of 
State  that  any  corporation  authorized  to  do  business  in 
this  State  is  guilty  of  unfair  discrimination  within  the 
terms  of  this  act,  it  shall  be  the  duty  of  the  Secretary  of 
State  to  refer  the  matter  to  the  Attorney  General  who 
shall,  if  the  facts  justify  it  in  his  judgment,  institute  pro- 
ceedings in  the  courts  against  such  corporation. 

SEC.  6.  If  any  corporation,  foreign  or  domestic,  au- 
thorized to  do  business  in  this  State,  is  found  guilty  of 
unfair  discrimination  within  the  terms  of  this  act,  it 
shall  be  the  duty  of  the  Secretary  of  State  to  immediately 
revoke  the  permit  of  such  corporation  to  do  business  in 
this  State. 

SEC.  7.  If  after  revocation  of  its  permit  such  corpora- 
tion, or  any  other  corporation  not  having  a  permit  and 
found  guilty  of  having  violated  any  of  the  provisions 
of  this  act,  shall  continue  or  attempt  to  do  business  in 
this  State,  it  shall  be  the  duty  of  the  Attorney  General, 
by  a  proper  suit  in  the  name  of  the  State,  to  oust  such 
corporation  from  all  business  of  overy  kind  and  char- 
acter in  said  State. 

SEC.  8.  Nothing  in  this  act  shall  be  construed  as  re- 
pealing any  other  act,  or  part  of  act,  but  the  remedies 
herein  provided  shall  be  cumulative  to  all  other  reme- 
dies provided  by  law. 

Approved  May  1,  1913. 

COURT  DECISIONS. 

David  M.  Eichardson  v.  Christian  H.  Buhl  and  Russell 
A.  Alger,  77  Mich.,  632. 

Daniel  Lovejoy  and  E.  W.  Lovejoy  v.  Jacob  Michels, 

88  Mich.,  15. 


158  LAWS  ON   TKUSTS  AND  MONOPOLIES. 

Merz  Capsule  Co.  v.  United  States  Capsule  Co.,  67 
Fed.,  414. 

Detroit  Salt  Co.  v.  National  Salt  Co.,  10  Det.  L.  N., 
366;  96  N.  W.,  1. 

Bingham  v.  Brands,  119  Mich.,  255. 

Hitchcock  v.  Anthony,  28  C.  C.  A.,  80;  83  Fed.,  779. 

Wolverine  Fish  Co.  v.  Booth,  143  Mich.,  89 ;  106  N.  W., 


Booth  v.  Davis,  127  Fed.,  875. 

Hunt  v.  Riverside  Co-operative  Club,  140  Mich.,  538; 
104  N.  W.,  40;  Am.  St.  Eep.,  420. 

Bigelow  v.  Calumet  &  Hecla  Mining  Co.,  155  Fed.,  869. 

Grand  Union  Tea  Co.  v.  Lewitsky,  153  Mich.,  244;  116 
N.  W.,  1090. 


MINNESOTA. 

STATUTES. 

No  person  or  association  of  persons  shall  enter  into 
any  pool,  trust  agreement,  combination  or  understanding 
whatsoever  with  any  other  person  or  association,  corpo- 
rate or  otherwise,  in  restraint  of  trade,  within  this  state, 
or  between  the  people  of  this  or  of  any  other  state  or 
country,  or  which  tends  in  any  way  or  degree  to  limit,  fix, 
control,  maintain  or  regulate  the  price  of  any  article  of 
trade,  manufacture  or  use  bought  and  sold  within  the 
state,  or  which  limits  or  tends  to  limit  the  production  of 
any  such  article,  or  which  prevents  or  limits  competition 
in  the  purchase  and  sale  thereof,  or  which  tends  or  is 
designed  so  to  do.  Every  person  violating  any  provision 
of  this  section,  or  assisting  in  such  violation,  shall  be 
guilty  of  a  felony,  and  upon  conviction  thereof  shall  be 
punished  by  a  fine  of  not  less  than  five  hundred  dollars 
nor  more  than  five  thousand  dollars,  or  by  imprisonment 
in  the  state  prison  for  not  less  than  three  nor  more  than 
five  years.  (Sec.  5168.) 

Every  domestic  corporation  which  shall,  directly  or  in- 
directly, violate  any  provision  of  section  5168,  or  which 
shall  in  any  way  assist  in  carrying  out  any  of  the  pur- 
poses of  such  illegal  pool,  trust  agreement,  combination 
or  understanding,  in  addition  to  the  penalties  imposed 
upon  the  members  thereof  by  said  section,  shall  forfeit  all 
its  corporate  franchises;  and  every  foreign  corporation 
admitted  to  transact  business  in  this  state,  guilty  of  like 
conduct,  shall  thereafter  be  prohibited  from  continuing 
its.  business  therein.  The  attorney-general  and  the  sev- 
eral county  attorneys  shall  begin  and  conduct,  in  the  dis- 
trict court,  all  actions  and  proceedings  necessary  to  en- 
force the  provisions  of  this  section,  and  any  citizen  may 
do  so.  Said  court,  by  injunction  or  restraining  order, 
may  prohibit  the  transaction  of  business  by  such  corpo- 
ration pending  the  trial  of  such  action.  (Sec.  5170.) 

See  also  L.  1907,  c.  269. 

159 


160  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

COURT  DECISIONS. 

Cornelius  G.  Kolff  v.  St.  Paul  Fuel  Exchange  et  al., 
48  Minn.,  215. 

Bohn  Manufacturing  Co.  v.  W.  G.  Hollis  et  al.,  54 
Minn.,  223. 

Ertz  v.  Produce  Exchange  Co..  82  Minn.,  173;  51 
L.  R.  A.,  825. 

Minnesota  v.  Northern  Securities  Co.,  123  Fed.,  692. 

Berryhill  v.  St.  Paul  Gaslight  Co.,  100  N.  W.,  216. 

Espenson  v.  Koepke.  93  Minn.,  278;  101  K  W..  168. 


MISSISSIPPI. 

CONSTITUTION. 


SEC.  198.  The  legislature  shall  enact  laws  to  prevent  all 
trusts,  combinations,  contracts,  and  agreements  inimical 

t".n  tint*   Tin Kl i r>   w£»l  rayo 


to  the  public  welfare. 

[Adopted,  November  1,  1890.] 


STATUTES. 

Section  5002  of  Mississippi  Code  of  1906,  as  amended 
by  L.  1908,  c.  119,  section  1,  provides: 

A  trust  and  combine  is  a  combination,  contract,  under- 
standing, or  agreement,  expressed  or  implied,  between 
two  or  more  persons,  corporations  or  firms,  or  associa- 
tions of  persons,  or  between  one  or  more  of  either  with 
one  or  more  of  the  others : 

(a)  In  restraint  of  trade; 

(b)  To  limit,  increase  or  reduce  the  price  of  a  com- 
modity ; 

(c)  To  limit,  increase  or  reduce  the  production  or  out- 
put of  a  commodity ; 

(d)  Intended  to  hinder  competition  in  the  production, 
importation,  manufacture,  transportation,  sale  or  pur- 
chase of  a  commodity; 

(e)  To  engross  or  forestall  a  commodity; 

(f)  To  issue,  own  or  hold  the  certificate  of  stock  of 
any  trust  or  combine; 

(g)  To  place  the  control,  to  any  extent,  of  business 
or  the  products  and  earnings  thereof,  in  the  power  of 
trustee,  by  whatever  name  called; 

(h)  By  which  any  other  persons  than  themselves,  their 
proper  officers,  agents  and  employees  shall,  or  shall  have 
the  power  to,  dictate  or  control  the  management  of  busi- 
ness; or — 

(i)  To  unite  or  pool  interests  in  the  importation, 
manufacture,  production,  transportation,  or  price  of  a 
commodity ;  and  is  inimical  to  the  public  welfare,  unlaw- 
ful and  a  criminal  conspiracy. 

16491—13 11  161 


162  LAWS  ON   TKUSTS  AND   MONOPOLIES. 

Any  corporation  organized  under  the  la\vs  of  this  or 
any  other  state,  or  country,  and  transacting  or  conduct- 
ing any  kind  of  business  in  this  state,  or  any  partnership 
or  individual,  or  other  association  of  persons  whatever, 
who  are  now,  or  shall  hereafter  create,  enter  into,  or  be- 
come a  member  of,  or  party  to,  any  pool,  trust,  combine, 
agreement,  combination,  confederation  or  understanding, 
whether  the  same  is  made  in  this  state  or  elsewhere,  with 
any  other  corporation,  partnership,  individual,  or  with 
any  other  person,  or  association  of  persons,  to  regulate 
or  fix  in  this  state  the  price  of  any  article  of  manufacture, 
mechanism,  merchandise,  commodity,  convenience,  re- 
pair, any  product  of  mining,  or  any  article  or  thing 
whatsoever,  or  the  price  or  premium  to  be  paid  for  in- 
suring property  against  loss  or  damage  by  fire,  lightning 
or  tornado,  or  to  maintain  said  price  when  so  regulated 
or  fixed,  or  who  are  now,  or  shall  hereafter  enter  into, 
become  a  member  of  or  party  to,  any  pool,  agree- 
ment, contract,  combination,  association  or  confederation, 
whether  made  in  this  state  or  elsewhere,  to  fix  or  limit 
in  this  state  the  amount  or  quantity  of  any  article  of 
manufacture,  mechanism,  merchandise,  commodity,  con- 
venience, repair,  any  product  of  mining,  or  any  article 
or  thing  whatsoever,  or  the  price  or  premiums  to  be  paid 
for  insuring  property  against  loss  or  damage  by  fire, 
lightning,  storm,  cyclone,  tornado,  or  any  other  kind  of 
policy  issued  by  any  corporation,  partnership,  individual, 
or  association  of  persons  aforesaid,  shall  be  deemed  and 
adjudged  guilty  of  a  conspiracy  to  defraud,  and  subject 
to  the  penalties  as  provided  by  chapter  145,  of  the  Code 
of  1906. 

Any  corporation,  domestic  or  foreign,  or  individual, 
partnership  or  association  of  persons  whatsoever; 

(j)  Who  shall  restrain,  or  attempt  to  restrain  the  free- 
dom of  trade  or  production  ; 

(k)  Or  who  shall  monopolize  or  attempt  to  monopolize 
the  production,  control  or  sale  of  any  commodity,  or  the 
prosecution,  management  or  control  of  any  kind,  class 
or  description  of  business; 

(1)  Or  who  shall  engross  or  forestall,'  or  attempt  to 
engross  or  forestall  any  commodity; 

(m)  Or  who  shall  destroy  or  attempt  to  destroy  com- 
petition in  the  manufacture  or  sale  of  a  commodity,  by 
selling  or  offering  same  at  a  price  below  the  normal  cost 
of  production; 


MISSISSIPPI.  163 

(n)  Or  who  shall  destroy  or  attempt  to  destroy  com- 
petition in  the  manufacture  or  sale  of  a  commodity,  by 
selling  or  offering*  the  same  for  sale  at  a  lower  price  at 
one  place  in  this  state  than  another,  differences  of  freight 
and  other  necessary  expenses  of  sale  and  delivery  con- 
sidered ; 

(o)  Or  who  shall  destroy  or  attempt  to  destroy  com- 
petition by  rendering  any  service  or  manipulating,  han- 
dling or  storing  any  commodity  for  a  less  price  in  one 
locality  than  in  another,  the  differences  in  the  necessary 
expenses  of  carrying  on  the  business  considered. 

Shall  be  deemed  and  held  a  trust  and  combine  within 
the  meaning  and  purpose  of  this  act,  and  chapter  14  of 
the  code  of  1906,  and  shall  be  liable  to  the  pains,  penal- 
ties, fines,  forfeitures,  judgments  and  recoveries  de- 
nounced against  trusts  and  combines  in  said  chapter  145 
of  the  code  of  1906,  and  shall  be  proceeded  against  in 
manner  and  form  therein  provided,  as  in  case  of  other 
trusts  and  combines.  And  it  shall  be  sufficient  to  make 
out  a  prima  facie  case  of  a  violation  of  subdivision  "  n  " 
hereof  to  show  a  sale  or  offer  of  sale  of  commodity  at  a 
lower  price  at  one  place  in  this  state  than  another,  or  a 
violation  of  subdivision  "  o  "  to  show  a  lower  charge  for 
the  services  therein  mentioned  in  one  locality  than 
another. 

L.  1908,  c.  119,  Sec.  2,  provides : 

"  No  right,  liability,  pain,  penalty,  forfeiture,  fine  or 
suit,  prosecution,  or  offense  committed,  under  laws  ex- 
isting prior  to  this  amendment,  of  said  section  5002  of 
the  code  of  1906,  shall  be  in  any  wise  remitted,  released, 
taken  away  or  affected  by  such  amendment,  but  the  same 
shall  be  asserted,  prosecuted,  declared,  inflicted,  imposed, 
proceeded  with  and  adjudged  according  to  the  law  in 
force  prior  to  this  amendment." 

Section  5003  of  the  Mississippi  Code  of  1906  provides : 

"  Every  contract  or  agreement  to  enter  into  or  pursue 
any  trust  and  combine,  and  every  contract  or  agreement 
made  by  another  with  any  trust  and  combine,  or  with 
any  member  of  a  trust  and  combine,  for  any  purpose  rela- 
tive to  the  business  of  such  trust  and  combine,  is  void, 
and  cannot  be  enforced  in  any  court." 

Section  5004,  of  the  Mississippi  Code  of  1906,  as 
amended  by  L.  1910,  c.  222,  provides: 

Any  person,  corporation,  partnership,  firm  or  associa- 
tion, or  any  representative  or  agent  thereof,  violating 


164  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

any  of  the  provisions  of  this  chapter  shall  forfeit  not  less 
than  twenty  dollars  nor  more  than  five  hundred  dollars 
for  every  such  offense  and  each  day  any  person,  corpora- 
tion, partnership,  firm  or  association  shall  continue  to 
do  so,  shall  be  a  separate  offense;  and  the  penalty  in 
such  cases  can  be  recovered  by  the  state  on  the  relation 
of  the  attorney-general  or  district  attorney;  and  it  shall 
be  the  duty  of  the  several  circuit  judges  to  specially  call 
the  attention  of  the  grand  juries  to  this  provision;  but 
no  prosecution,  pain,  penalty,  or  forfeiture  for  offenses 
committed  under  laws  already  existing  at  the  time  of  the 
adoption  of  this  act,  shall  be  in  anywise  remitted,  re- 
leased, or  taken  away  by  reason  hereof  or  anything  con- 
tained, but  the  same  shall  be  proceeded  with,  adjudged, 
imposed  and  inflicted  in  conformity  with  laws  already 
existing  and  in  conformity  with  all  the  provisions  of 
chapter  145,  Code  of  Mississippi  of  1906,  which  may  be 
constitutionally  applicable  thereto. 

Section  5005  of  Mississippi  Code  of  1906,  as  amended 
by  L.  1910,  c.  223,  provides : 

No  corporation  shall  directly  or  indirectly  hereafter 
purchase,  or  in  any  manner  acquire  the  capital  stock  or 
any  part  thereof  of  any  other  competing  corporation  do- 
ing business  in  this  state,  nor  directly  or  indirectly  here- 
after purchase  or  in  any  manner  acquire,  the  franchise, 
plant  or  equipments  of  any  other  corporation  doing  busi- 
ness in  this  state,  if  such  other  corporation  be  engaged 
in  the  same  kind  of  business  and  being  a  competitor 
therein.  Any  corporation  offending  against  this  provi- 
sion shall  forfeit  its  charter,  if  a  domestic  corporation, 
and  if  a  foreign  corporation  shall  forfeit  its  right  to  do 
business  in  this  state,  and  shall  be  proceeded  against  by 
the  attorney  general  in  manner  and  form  provided  in 
section  5004  of  this  chapter;  but  no  prosecution,  pain, 
penalty,  or  forfeitures  for  offenses  committed  under  laws 
already  existing  at  the  time  of  the  adoption  of  this  act, 
shall  in  any  wise  be  remitted,  released,  or  taken  away,  by 
reason  hereof  or  anything  herein  contained,  but  the  same 
shall  be  pro< needed  with  and  in  conformity  with  all  the 
provisions  of  Chapter  145,  Code  of  Mississippi  of  1906, 
which  may  be  constitutionally  applicable  thereto. 

Section  5006  of  the  Mississippi  Code  of  1906  provides : 

No  corporation,  domestic  or  foreign,  shall  engage  in 
any  business  not  expressly  authorized  by  its  charter,  nor 
fairly  and  reasonably  incidental  to  the  business  therein 


MISSISSIPPI.  165 

authorized.  Any  corporation  offending  against  this  pro- 
vision shall,  if  a  domestic  corporation,  forfeit  its  charter, 
and  if  a  foreign  corporation,  shall  forfeit  its  right  to  do 
business  in  this  state  and  shall  be  proceeded  against  by 
the  attorney-general  in  manner  and  form  provided  in 
section  5004. 

Section  5007  of  the  Mississippi  Code  of  1906,  as 
amended  by  c.  250,  L.  1912,  provides: 

Any  person  injured  or  damaged  by  a  trust  and  com- 
bine as  herein  defined,  or  its  effects  direct  or  indirect, 
may,  in  each  instance,  of  such  injury  or  damage,  recover 
the  sum  of  five  hundred  dollars,  and  all  actual  damages ; 
and  he  may  maintain  his  action  therefor  against  one  or 
more  of  the  parties  to  the  trust  and  combine,  their  attor- 
neys, officers  and  agents,  and  that  whether  or  not  all 
parties  to  the  trust  and  combine  be  known  or  whether 
or  not  the  trust  and  combine  were  made  or  shall  exist  in 
this  state.  And  in  any  suit  under  this  section,  proof  by 
any  party  plaintiff  that  he  has  been  compelled  to  pay 
more  for  any  commodity,  or  to  accept  less  for  any  com- 
modity, or  to  pay  more  for  any  service  rendered  by  any 
corporation  exercising  a  public  franchise,  by  reason  of 
the  unlawful  act  or  agreement  of  the  defendant  trust, 
its  officers,  agents  or  attorneys,  than  he  would  have  been 
compelled  to  give  or  accept,  but  for  such  unlawful  act 
or  agreement,  shall  be  prima  facie  evidence  of  damage, 
and  in  every  such  case  proof  of  an  unlawful  purpose  or 
agreement  to  raise  or  lower  price  or  cost  shall  be  prima 
facie  evidence  that  such  price  or  cost  was  raised  or  low- 
ered by  reason  of  such  purpose  or  agreement. 

Section  5008  of  the  Mississippi  Code  of  1906  provides : 

If  any  person,  association,  firm  or  corporation  shall 
combine  with  any  other  person,  association,  firm  or  cor- 
poration, or  if  either  of  them  combine  with  one  or  more 
of  the  others  to  prevent,  by  pooling,  any  or  either  of  said 
persons,  associations,  firms  or  corporations  from  sep- 
arately or  individually  bidding  for  the  performance  of  a 
public  work  for  the  state,  or  any  county,  municipality, 
or  levee  board  thereof;  or  if  any  person,  association, 
firm  or  corporation  shall  prevent,  by  persuasion  or  re- 
ward, any  other  person,  association,  firm  or  corporation, 
or  any  one  or  more  of  them,  from  bidding  for  the  per- 
formance of  such  public  work,  they,  and  each  of  them, 
shall  be  guilty  of  a  misdemeanor,  and  shall  be  fined  not 
less  than  twentv-five  nor  more  than  one  thousand  dollars. 


166  LAWS  ON   TKUSTS  AND   MONOPOLIES. 

Section  5009  of  the  Mississippi  Code  of  1906  provides : 
All  sums  of  money  to  be  paid  on  any  contract  on  behalf 
of  the  state,  or  any  county,  municipality  or  levee  board 
thereof,  when  the  provision  of  the  last  preceding  section 
had  been  violated,  shall  not  be  collectible,  nor  shall  the 
same  be  paid  by  any  officer  or  board  having  the  payment 
thereof. 

Section  5010  of  the  Mississippi  Code  of  1906  provides : 
Proceedings  of  any  and  every  kind  for  forfeiture  of 
charter,  for  forfeiture  of  right  to  do  business  in  this  state, 
for  recovery  of  damages  and  all  civil  proceedings  of  any 
character  whatever  authorized  by  law  for  the  execution 
and  enforcement  of  the  anti-trust  laws  of  this  state  may 
be  brought  against  any  corporation  in  any  county  where 
it  has  a  domicile  or  place  of  business,  or  where  any  of  its 
officers  or  agents  may  be  found. 

Section  5011  of  the  Mississippi  Code  of  1906  provides: 
Like  proceedings  against  any  two  or  more  of  any  num- 
ber of  corporations  or  individuals,  or  of  corporations  and 
individuals  believed  to  be  parties  to  any  trust  and  com- 
bine, may  be  brought  in  the  county  where  the  trust  and 
combine  was  formed,  or  where  it  exists  or  is  carried  on. 
promoted,  operated,  practiced,  employed,  used  or  en- 
joyed; or  in  any  county  in  which  either  of  the  defendants 
may  have  a  domicile,  or  where  an  officer  or  agent  of  any 
defendant  corporation  may  be  found.  And  all  such  pro- 
ceedings may  be  prosecuted  to  final  judgment  or  decree 
against  any  one  or  more  of  the  defendants  thereto,  not- 
withstanding there  may  be  a  dismissal,  acquittal,  verdict, 
judgment  or  decree  in  favor  of  the  local  or  any  other 
defendant. 

Section  5012  of  the  Mississippi  Code  of  1906  provides : 
Criminal  prosecutions,  under  the  anti-trust  laws  of  this 
state,  may  be  instituted  and  conducted  to  final  judgment 
against  any  one  or  more  of  any  number  of  corporations 
or  individuals,  or  both  in  any  county  in  which  a  violation 
of  said  laws  has  been  committed  by  them  or  in  any  county 
in  which  they  formed  a  trust  and  combine,  or  in  which 
such  trust  and  combine,  though  formed  elsewhere,  is  by 
them,  or  any  of  them,  carried  on,  promoted,  employed, 
operated,  used  or  enjoyed. 

Section  5013  of  the  Mississippi  Code  of  1906  provides : 

No  person  called  as  a  witness  in  any  prosecution  or 

proceeding  to  enforce  the  anti-trust  laws  of  this  state, 


MISSISSIPPI.  167 

though  himself  a  defendant  therein  or  an  officer,  attor- 
ney, agent  or  employee  of  a  defendant  or  stockholder  in 
a  defendant  corporation,  shall  be  excused  from  testifying 
upon  the  ground  that  his  evidence  might  criminate  or 
tend  to  criminate  himself;  but  every  person,  otherwise 
competent,  when  called  as  a  witness  in  such  cases,  shall 
be  required  to  testify  and  to  disclose  all  facts  known  to 
him  which  are  pertinent  to  the  issue. 

Section  5014  of  the  Mississippi  Code  of  1906  provides : 
But  the  testimony  so  given  shall  not  be  used  in  any 
prosecution  or  proceeding,  civil  or  criminal,  against  the 
person  so  testifying.  A  person  so  testifying  shall  not 
thereafter  be  liable  to  indictment  or  presentment  by  in- 
formation, nor  to  prosecution  or  punishment  for  the  of- 
fense with  reference  to  which  his  testimom^  was  given, 
and  may  plead  or  prove  the  giving  of  testimony  accord- 
ingly in  bar  of  such  indictment,  information  or  prose- 
cution. 

Section  5015  of  the  Mississippi  Code  of  1906  provides : 
Every  corporation  shall  be  answerable  for  any  unlaw- 
ful act,  contract,  agreement,  arrangement,  understanding 
or  combination  done,  made  or  entered  into  for  and  on  its 
behalf  by  any  officer,  stockholder,  agent  or  attorney  per- 
mitted or  suffered  to  manage,  direct,  regulate  or  control 
its  business  in  that  particular,  and  such  unlawful  act, 
contract,  agreement,  arrangement,  understanding  or  com- 
bination shall  be  deemed  and  held  to  have  been  done, 
made  or  entered  into  by  the  corporation  itself  as  fully 
as  if  done,  made  or  entered  into  by  its  board  of  directors 
by  regular  vote  duly  entered  upon  the  minutes. 

Section  5016  of  Mississippi  Code,  as  amended  by  L. 
1908,  c.  204,  provides: 

It  shall  be  the  duty  of  the  district  attorneys  in  their 
several  districts  and  of  the  attorney  general  of  the  state 
to  enforce  the  anti-trust  laws  of  this  state  by  proceeding 
in  the  nature  of  quo  warranto  by  injunction  or  any  other 
appropriate  remedy,  civil  or  criminal,  at  law  or  in  equity. 
Jurisdiction  is  hereby  conferred  upon  the  Chancery 
Court  to  hear  and  determine  all  suits  arising  out  of  vio- 
lations of  the  anti-trust  laws,  and  such  courts  may  grant 
injunctions,  appoint  receivers,  impose  the  penalties  pro- 
vided by  law  and  enter  such  orders  and  decrees  as  may 
be  necessary  to  prevent  the  continued  operation  of  unlaw- 
ful trusts  and  combines  within  this  state. 


168  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

Section  5017  of  the  Mississippi  Code  of  1906  provides  : 
Any  corporation  may  be  required  under  a  subpoena 
duces  tecum  served  upon  its  president,  secretary  or  any 
of  its  directors,  to  produce  in  court  and  submit  to  inspec- 
tion upon  the  trial  of  any  proceeding,  civil  or  criminal, 
under  the  anti-trust  laws  of  this  state,  any  books,  minutes, 
records,  papers,  documents,  vouchers  or  writings  belong- 
ing to  or  in  the  possession  of  such  corporation. 

Section  5019  of  the  Mississippi  Code  of  1906  provides : 
Any  corporation  failing  or  refusing  to  comply  with 
the  order  of  such  subpoena  duces  tecum,  when  duly  served 
as  herein  provided,  shall  be  in  contempt  of  court,  and 
shall  be  punished  by  a  fine  of  not  less  than  one  hundred 
dollars  nor  more  than  two  thousand  dollars. 

Section  5020  of  the  Mississippi  Code  of  1906  provides : 
No  prosecution,  pain,  penalty  or  forfeiture  for  offenses 
committed  under  laws  already  existing  at  the  time  of 
the  adoption  of  this  chapter  shall  be  in  anywise  remitted, 
released,  or  taken  away  by  reason  thereof  of  anything 
herein  contained;  but  the  same  shall  be  proceeded  with, 
adjudged,  imposed  and  inflicted  in  conformity  with  the 
laws  already  existing  and  in  conformity  with  all  the 
provisions  of  this  chapter  which  may  be  constitutionally 
applicable  thereto;  provided,  that  the  trial  court  may 
impose  upon  each  person  or  corporation  in  a  trust  and 
combine  a  fine  of  not  less  than  two  hundred  nor  more 
than  five  thousand  dollars;  or  the  court  may  not  impose 
such  fine  but  order  and  adjudge  a  forfeiture  of  its  charter 
if  a  domestic  corporation,  or  the  forfeiture  of  its  right 
or  license  to  do  business  in  this  state  if  a  foreign  cor- 
poration; or  the  court  may  impose  such  fine  and  adjudge 
the  forfeiture  of  charter  or  right  or  license  to  do  business 
in  this  state ;  provided,  that  for  offenses  committed  prior 
to  the  adoption  of  this  chapter  the  court  may  not  inflict 
both  a  fine  and  forfeiture  of  charter  or  license  to  do  busi- 
ness in  this  state. 

Section  5021  of  the  Mississippi  Code  of  1906  provides: 
All  acts  and  parts  of  acts  in  conflict  with  this  chapter 
are  hereby  repealed ;  but  no  right,  liability,  pain,  penalty, 
forfeiture  or  prosecution  under  laws  existing  prior  to 
the  adoption  of  this  chapter  shall  be  in  anywise  affected 
thereby,  but  the  same  may  be  asserted,  prosecuted,  de- 
clared, inflicted  and  imposed  under  the  laws  in  force 
prior  to  the  adoption  of  this  chapter.  This  chapter  shall 


MISSISSIPPI.  169 

be  liberally  construed  in  all  courts  to  the  end  that  trusts 
and  combines  may  be  suppressed,  and  the  benefits  arising 
from  competition  in  business  preserved  to  the  people  of 
this  state. 

COURT  DECISIONS. 

American  Fire  Insurance  Co.  et  al  v.  State,  75  Miss.. 
24 ;  22  So.  Eep.,  99. 

Greenville  Compress  and  Warehouse  Co.  v.  Compress 
and  Warehouse  Co.,  TO  Miss.,  669. 

Houck  v.  Wright,  77  Miss.,  476. 

B.  F.  Johnson  Pub.  Co.  v.  Mills,  79  Miss.,  543. 

Barataria  Canning  Co.  v.  Joulian,  80  Miss.,  555. 

Kosciusko  Oil  Mill  &  Fertilizer  Co.  v.  Wilson  Cotton 
Oil  Co.,  90  Miss.,  551. 

State  v.  Jackson  Cotton  Oil  Co.,  48  So.  Eep.,  300. 


MISSOURI. 

STATUTES. 

Chapter  98  of  the  Revised  Statutes  as  amended  in  1913, 
entitled  "  Pools,  Trusts,  Conspiracies  and  Discrimina- 
tions." 

SEC.  10298.  Any  person  who  shall  create,  enter  into,  be- 
come a  member  of  or  participate  in  any  pool,  trust,  agree- 
ment, combination,  confederation  or  understanding  with 
any  person  or  persons  in  restraint  of  trade  or  competition 
in  the  importation,  transportation,  manufacture,  purchase 
or  sale  of  any  product  or  commodity  in  this  state,  or  any 
article  or  thing  bought  or  sold  whatsoever,  shall  be 
deemed  and  adjudged  guilty  of  a  conspiracy  in  restraint 
of  trade,  and  shall  be  punished  as  provided  in  this  ar- 
ticle. 

SEC.  10299.  Any  person  who  shall  create,  enter  into,  be- 
come a  member  of  or  participate  in  any  pool,  trust,  agree- 
ment, combination,  confederation  or  understanding  with 
any  other  person  or  persons  to  regulate,  control  or  fix  the 
price  of  any  article  of  manufacture,  mechanism,  merchan- 
dise, commodity,  convenience  or  repair,  or  any  product  of 
mining,  or  any  article  or  thing  whatsoever,  of  any  class 
or  kind  bought  and  sold,  or  the  price  or  premium  to  be 
paid  for  insuring  property  against  loss  or  damage  by 
fire,  lightning  or  storm,  or  to  maintain  said  price  when 
so  regulated  or  fixed,  or  shall  enter  into,  become  a  mem- 
ber of  or  participate  in  any  pool,  trust,  agreement,  con- 
tract, combination,  confederation  or  understanding,  to 
fix  or  limit  the  amount  (or)  quantity  of  any  article  of 
manufacture,  mechanism,  (merchandise),  commodity, 
convenience,  repair,  any  product  of  mining,  or  any  ar- 
ticle or  thing  whatsoever  of  any  class  or  kind  bought  and 
sold,  or  the  price  or  premium  to  be  paid  for  insuring 
property  against  loss  or  damage  by  fire,  lightning  or 
storm,  shall  be  deemed  and  adjudged  guilty  of  a  con- 
spiracy in  restraint  of  trade,  and  be  punished  as  pro- 
vided for  in  this  article. 

171 


172  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

SEC.  10300.  Any  two  or  more  persons  engaged  in 
buying  or  selling  any  article  of  commerce,  manufac- 
ture, mechanism,  commodity,  convenience,  repair,  any 
product  of  mining,  or  any  article  or  thing  of  any  class  or 
kind  whatsoever,  who  shall  create,  enter  into,  become 
members  of  or  participate  in  any  pool,  trust,  agreement, 
combination,  confederation,  association  or  understand- 
ing to  control  or  limit  the  trade  in  any  such  article  or 
thing,  or  to  limit  competition  in  such  trade  by  refusing 
to  buy  from  or  sell  to  any  other  person  any  such  article 
or  thing  aforesaid,  for  the  reason  that  such  other  person 
is  not  a  member  of  or  a  party  to  such  pool,  trust,  com- 
bination, confederation,  association  or  understanding,  or 
shall  boycott  or  threaten  any  person  from  buying  or  sell- 
ing to  any  other  person  who  is  not  a  member  of  or  a 
party  to  such  pool,  trust,  agreement,  combination,  con- 
federation, association  or  understanding  in  such  article 
or  thing  aforesaid,  shall  be  deemed  and  adjudged  guilty 
of  a  conspiracy  in  restraint  of  trade,  and  punished  as 
provided  for  in  this  article. 

SEC.  10301.  All  arrangements,  contracts,  agreements, 
combinations  or  understandings  made,  or  entered  into 
between  any  two  or  more  persons,  designed  or  made  with 
a  view  to  lessen,  or  which  tend  to  lessen,  lawful  trade, 
or  full  and  free  competition  in  the  importation,  trans- 
portation, manufacture  or  sale  in  this  state  of  any  prod- 
uct, commodity  or  article,  or  thing  bought  and  sold,  of 
any  class  or  kind  whatsoever,  including  the  price  or 
premium  to  be  paid  for  insuring  property  against  loss  or 
damage  by  fire,  lightning  or  storm,  and  all  arrange- 
ments, contracts,  agreements,  combinations  or  under- 
standings made  or  entered  into  between  any  two  or  more 
persons  which  are  designed  or  made  with  a  view  to  in- 
crease, or  which  tend  to  increase  the  market  price  of  any 
product,  commodity  or  article  or  thing,  of  any  class  or 
kind  whatsoever  bought  and  sold,  including  the  price  or 
premium  to  be  paid  for  insuring  property  against  loss  or 
damage  by  fire,  lightning  or  storm,  are  hereby  declared 
to  be  against  public  policy,  unlawful  and  void;  and  any 
person  or  persons  creating,  entering  into,  becoming  a 
member  of  or  participating  in  such  arrangements,  con- 
tracts, agreements,  combinations  or  understandings  shall 
be  deemed  and  adjudged  guilty  of  a  conspiracy  in  re- 
straint of  trade,  and  punished  as  provided  for  in  this 
article. 


MISSOURI.  173 

SEC.  10302.  Any  person  violating  any  of  the  pro- 
visions of  this  act,  or  who  shall  do  any  act  pro- 
hibited or  declared  unlawful  by  the  provisions  of  this  act, 
shall  be  adjudged  guilty  of  a  felony,  and  upon  convic- 
tion thereof  shall  be  punished  by  imprisonment  in  the 
penitentiary  not  exceeding  five  years  or  by  imprison- 
ment in  the  county  jail  not  exceeding  one  year,  or  by  a 
fine  of  not  less  than  five  hundred  dollars  nor  more  than 
five  thousand  dollars,  or  by  both  such  fine  and  imprison- 
ment. 

SEC.  10303.  The  several  circuit  courts  of  this  state 
are  hereby  invested  with  jurisdiction  to  prevent  and 
restrain  any  person  or  persons,  corporation  (.)  part- 
nership, individual  or  association  of  individuals  from  en- 
tering into  any  combinations,  pools,  agreements  in  the 
form  of  trusts,  confederation,  conspiracy  or  understand- 
ing declared  illegal  by  this  act,  or  any  other  law  of  this 
state  relative  to  pools,  trusts,  conspiracies  and  unlawful 
combinations.  And  it  shall  be  the  duty  of  the  attorney- 
general  and  of  the  prosecuting  attorneys  to  institute  pro- 
ceedings in  equity  to  prevent  and  restrain  all  violations 
of  this  act  and  of  any  other  law  concerning  pools,  trusts 
and  conspiracies  and  unlawful  combinations.  Such  pro- 
ceedings may  be  by  way  of  petition,  setting  forth  the 
case  and  praying  that  such  violation  be  enjoined  or  other- 
wise prohibited.  When  the  parties  complained  of  shall 
have  been  duly  notified  of  such  petition,  the  court  shall 
proceed,  as  soon  as  may  be,  to  the  hearing  and  determina- 
tion of  the  case;  anS  pending  such  petition,  and  before 
final  decree,  the  court  may,  at  any  time,  make  such  tempo- 
rary restraining  order  or  prohibition  as  shall  be  deemed 
just  in  the  premises. 

SEC.  10304.  Any  corporation  created  or  organized  by 
or  under  the  laws  of  this  state  which  shall  violate  any 
of  the  provisions  of  this  act  may,  upon  proper  proof  being 
made  thereof  in  any  court  of  competent  jurisdiction  in 
this  state,  be  declared  by  the  court  to  have  forfeited  its 
corporate  rights  and  franchises,  and  the  same  may  by  the 
court  be  declared  forfeited,  void  and  of  non-effect,  and 
shall  thereupon  cease  and  determine ;  and  such  court  may, 
by  such  judgment  and  decree,  also  declare  all  or  any  part 
of  the  property  of  such  corporation  forfeited  unto  the  ' 
state,  or  in  lieu  of  the  forfeiture  of  its  corporate  rights 
and  franchises,  or  in  lieu  of  the  forfeiture  of  all  or  any 
part  of  the  property  of  such  corporation,  assess  against  it 


174  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

a  fine;  and  any  corporation  created  or  organized  by  or 
under  the  laws  of  any  other  state  or  country  which  shall 
violate  any  of  the  provisions  of  this  act  shall,  upon  proper 
proof  being  made  thereof  in  any  court  of  competent  juris- 
diction in  this  state,  be  declared  by  the  court  to  have 
forfeited  its  right  and  privilege  thereafter  to  do  any  busi- 
ness in  this  state,  and  the  same  shall  by  the  court  be  de- 
clared forfeited,  void  and  of  non-effect,  and  shall  there- 
upon cease  and  determine;  and  such  court  may,  by  judg- 
ment and  decree,  also  declare  all  or  any  part  of  the  prop- 
erty in  this  state  of  such  corporation  forfeited  unto  the 
state,  or  in  lieu  of  the  forfeiture  of  its  right  and  privi- 
lege to  do  business  in  this  state,  or  in  lieu  of  the  forfeiture 
of  all  or  any  part  of  the  property  of  such  corporation, 
assess  against  it  a  fine;  and  in  all  proceedings  for  the 
violation  of  any  of  the  provisions  of  this  act  against  any 
corporation  created  or  organized  under  the  laws  of  this 
or  any  other  state  or  country,  proof  of  the  acts  of  any 
person  who  has  been  acting  as  the  agent  of  such  corpora- 
tion in  transacting  its  business  in  this  state  in  the  name, 
behalf  or  interest  of  such  corporation  shall  be  received 
as  prima  facie  proof  of  the  acts  of  the  corporation  itself ; 
and  it  shall  be  the  duty  of  the  clerk  of  the  court  in  which 
any  judgment  of  forfeiture  shall  be  rendered,  as  herein 
provided  for,  to  certify  the  decree  thereof  to  the  secretary 
of  state,  and  if  it  be  an  insurance  company,  also  to  the 
superintendent  of  the  insurance  department,  who  shall 
take  notice  and  be  governed  thereby  as  to  the  corporate 
powers  and  rights  of  said  corporation;  and  in  case  any 
court  shall  render  a  decree  forfeiting  all  or  any  part  of 
the  property  of  any  corporation  violating  the  provisions 
of  this  act,  such  court  shall  also  appoint  a  receiver  thereof 
to  dispose  of  the  same  in  such  manner  as  the  court  may 
direct,  and  the  net  proceeds  arising  from  the  sale  thereof 
shall  be  paid  into  the  state  treasury,  as  shall  all  fines  that 
may  be  imposed  against  any  person  or  corporation  vio- 
lating the  provisions  of  this  act  be  paid  into  the  state 
treasury. 

SEC.  10305.  Any  person  injured  in  his  business  or 
property  by  any  other  person  or  persons  by  reason  of 
anything  forbidden-  or  declared  to  be  unlawful  by  this 
act  may  sue  therefor  in  any  circuit  court  of  this  state 
in  which  the  defendant  or  defendants,  or  any  of  them, 
reside,  or  have  any  officer,  agent  or  representative,  or  in 
which  any  such  defendant  or  any  agent,  officer  or  repre- 


MISSOUKI.  175 

sentative  may  be  found,  without  regard  to  the  amount  in 
controversy,  and  shall  recover  threefold  the  damages  by 
him  sustained,  and  the  costs  of  suit,  including  a  reason- 
able attorney's  fee. 

SEC.  10306.  It  shall  not  be  lawful  for  any  corporation 
to  issue  or  to  own  trust  certificates,  or  for  any  corpora- 
tion, agent,  officer  or  employee,  or  the  directors  or  stock- 
holders of  any  corporation,  to  enter  into  any  combina- 
tion, contract  or  agreement  with  any  person  or  persons, 
corporation  or  corporations,  or  with  any  stockholder  or 
director  thereof,  the  purpose  and  effect  of  which  com- 
bination, contract  or  agreement  shall  be  to  place  the 
management  or  control  of  such  combination  or  combina- 
tions, or  the  manufactured  product  thereof,  in  the  hands 
of  any  trustee  or  trustees,  with  the  intent  to  limit  or  fix 
the  price  or  lessen  the  production  and  sale  of  any  article 
of  commerce,  use  or  consumption,  or  to  prevent,  restrict 
or  diminish  the  manufacture  or  output  of  any  such 
article. 

SEC.  10307.  Any  purchaser  of  any  article  or  commodity 
from  any  individual,  company  or  corporation  transacting 
business  contrary  to  any  provision  of  the  preceding  sec- 
tions of  this  act  shall  not  be  liable  for  the  price  or  pay- 
ment of  such  article  or  commodity,  and  may  plead  this 
act  as  a  defense  to  any  suit  for  such  price  or  payment. 

SEC.  10308.  That  whenever  the  corporate  rights  and 
privileges  of  any  corporation  organized  under  the  laws  of 
this  state  shall  have  been  declared  forfeited  by  a  judg- 
ment of  a  court  of  competent  jurisdiction  for  any  viola- 
tion of  the  provisions  of  this  act,  and  whenever  the  rights 
and  privileges  of  any  corporation  organized  under  the 
laws  of  any  other  state  or  country  to  do  business  in  this 
state,  have  been  declared  forfeited  by  a  judgment  of  a 
court  of  competent  jurisdiction  for  the  violation  of  any  of 
the  provisions  of  this  act  it  shall  thereafter  be  unlawful 
for  any  person,  corporation  or  association  of  persons  to 
deal  in  or  offer  for  sale  in  this  state  any  article  of 
manufacture,  mechanism,  merchandise,  commodity,  con- 
venience, repair,  any  product  of  mining,  or  article  or 
thing  whatsoever,  or  contract  of  insurance  against  loss  or 
damage  by  fire,  lightning  or  storm,  made,  produced,  man- 
ufactured or  dealt  in  by  any  corporation  whose  rights, 
franchises  or  privileges  have  been  so  declared  to  be  for- 
feited; and  the  foregoing  provisions  of  this  section  are 
hereby  made  applicable  in  all  respects  to  the  successors 


176  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

or  assigns  of  any  corporations  whose  rights,  franchises 
or  privileges  have  been  so  declared  to  be  forfeited. 

SEC.  10309.  That  the  word  person  or  persons,  used  in 
this  act,  shall  be  deemed  to  include  natural  persons,  part- 
nerships, associations  of  persons  and  corporations  created 
or  organized  by  or  under  the  laws  of  this  state,  or  under 
the  laws  of  any  other  state  or  country. 

SEC.  10310.  In  any  suit  that  is  now  pending,  or  which 
may  hereafter  be  brought  in  which  it  is  charged  that  any 
person,  corporation,  partnership  or  association  of  persons 
has  created,  entered  into,  become  a  member  of  or  partici- 
pate in  any  pool,  trust,  agreement,  combination,  confed- 
eration or  understanding  in  restraint  of  trade  or  competi- 
tion with  any  other  person,  corporation,  partnership  or 
association  of  persons,  it  shall  not  be  necessary  to  allege 
or  plead  the  manner  in  which,  or  when  or  where  such 
pool,'  trust,  agreement,  combination,  confederation  or  un- 
derstanding was  made  or  effected. 

SEC.  103-11.  In  any  proceeding  brought  to  enforce  the 
provisions  of  this  act,  no  witness  shall  be  permitted  to 
refuse  to  answer  any  question  material  to  the  matter  in 
controversy,  or  shall  be  permitted  to  refuse  to  produce 
any  books  or  papers  material  to  such  inquiry  upon  the 
ground  that  to  produce  such  books  and  papers  or  to 
answer  such  questions  might  tend  to  incriminate  him  or 
subject  him  to  a  penalty  or  a  forfeiture;  but  no  person 
shall  be  subject  to  prosecution  or  to  any  action  for  a 
penalty  or  a  forfeiture  on  account  of  any  transaction, 
matter  or  thing  concerning  which  he  may  testify  or  pro- 
duce books  or  papers. 

SEC.  10312.  In  any  indictment  or  information  for  the 
violation  of  any  of  the  provisions  of  this  act,  or  for  the 
doing  of  anything  forbidden  or  declared  unlawful  by 
the  provisions  of  this  act,  it  shall  be  sufficient  to  allege 
that  any  person  or  persons  have  created,  entered  into, 
become  members  of  or  participated  in  any  pool,  trust, 
agreement,  combination,  confederation  or  understand- 
ing without  alleging  the  manner  in  which  such  pool,  trust, 
agreement,  combination,  confederation  or  understand- 
ing has  been  effected,  and  it  shall  not  be  necessary  to 
allege  how,  when*  or  where  such  pool,  trust,  agreement, 
combination,  confederation  or  understanding  was  ef- 
fected. 

SEC.  10313.  The  enactment  and  taking  effect  of  this 
article  shall  not  have  the  effect  to  release  or  extinguish 


MISSOURI.  177 

any  penalty,  forfeiture  or  liability  incurred  by  any  cor- 
poration or  person  on  account  of  the  violation  of  any 
law  of  this  state  prior  to  the  taking  effect  of  this  article. 

SEC.  10313a.  In  any  proceeding  against  or  prosecution 
of  an}/  insurance  company  under  the  provisions  of  this 
article,  it  shall  be  prima  facie  evidence  that  such  com- 
pany is  a  member  of  a  pool,  trust,  agreement,  confedera- 
tion or  understanding  to  control,  effect  or  fix  the  price 
or  premium  to  be  paid  for  insuring  property  against  loss 
or  damage  by  fire,  lightning  or  storm,  if  it  be  shown  that 
such  company  or  any  agent  or  representative  thereof,  in 
writing  insurance,  has  used  any  insurance  rate,  or  made 
use  of  or  consulted  any  rate  book,  paper  or  card  contain- 
ing any  insurance  rate,  prepared,  published,  kept  or  fur- 
nished by  any  person,  association  of  persons  or  bureau 
employed  by,  representing  or  acting  on  behalf  of  any 
other  insurance  company  or  association  in  and  about  the 
making  and  publishing  of  insurance  rates  for  use  in  any 
portion  of  this  state. 

SEC.  10314.  Any  person,  firm,  company,  association  or 
corporation,  foreign  or  domestic,  doing  business  in  the 
state  of  Missouri  and  engaged  in  the  production,  manu- 
facture, purchase,  sale  or  distribution  of  any  commodity 
or  article  of  commerce  in  general  use,  that  intentionally, 
for  the  purpose  of  destroying  the  competition  of  any 
regular,  established  dealer  of  such  commodity,  or  to  pre- 
vent the  competition  of  any  person,  who  in  good  faith 
intends  and  attempts  to  become  such  dealer,  shall  dis- 
criminate between  different  sections,  localities,  commodi- 
ties, cities  or  towns  of  this  state,  by  purchasing  such 
cohimodity  or  article  at  a  higher  price  or  rate  in  one  sec- 
tion, locality,  community,  city  or  town,  than  is  paid  for 
the  same  commodity  or  article  by  the  said  person,  firm, 
company,  association  or  corporation,  in  another  section, 
locality,  community,  city  or  town;  or  by  selling  such  com- 
modity or  article  in  one  section,  locality,  community, 
city  or  town  at  a  lower  price  or  rate  than  such  commodity 
or  article  is  sold  for  by  said  person,  firm,  company,  asso- 
ciation or  corporation  in  another  section,  locality,  com- 
munity, city  or  town,  after  making  due  allowance  for  the 
difference,  if  any,  in  the  grade  or  quality  and  in  the 
actual  cost  of  transportation  from  the  point  of  purchase 
to  the  point  of  manufacture  or  storage,  or  from  the  point 
of  production,  manufacture,  or  storage  to  the  place  of 
sale  or  distribution,  or  by  giving  or  paying  or  promising 
16491—13 12 


178  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

to  give  or  pay  a  secret  or  private  rebate  or  bonus  in  con- 
nection with  the  purchase,  sale  or  distribution  of  any 
commodity  or  article  of  commerce,  shall  be  deemed  guilty 
of  unfair  discrimination  which  is  hereby  prohibited  and 
declared  unlawful. 

SEC.  10315.  Any  person,  firm,  company,  association  or 
corporation  violating  any  of  the  provisions  of  the  pre- 
ceding section,  and  any  officer,  agent  or  receiver  of  any 
firm,  company,  association  or  corporation,  or  any  member 
of  the  same,  or  any  individual,  found  guilty  of  a  viola- 
tion thereof,  shall  be  fined  not  less  than  five  hundred 
dollars  nor  more  than  five  thousand  dollars,  or  be  im- 
prisoned in  the  county  jail  not  to  exceed  one  year,  or 
suffer  both  penalties. 

SEC.  10316.  All  contracts  or  agreements  made  in  viola- 
tion of  any  of  the  provisions  of  the  two  preceding  sec- 
tions shall  be  void. 

SEC.  10317.  It  shall  be  the  duty  of  the  prosecuting  at- 
torneys, in  their  counties,  and  the  attorney-general  to 
enforce  the  provisions  of  the  preceding  sections  of  this 
article  by  appropriate  actions  in  courts  of  competent 
jurisdiction. 

SEC.  10318.  If  complaint  shall  be  made  to  the  secre- 
tary of  state  that  any  corporation  authorized  to  do  busi- 
ness in  this  state  is  guilty  of  unfair  discrimination  within 
the  terms  of  this  article,  it  shall  be  the  duty  of  the  secre- 
tary of  state  to  refer  the  matter  to  the  attorney-general, 
who  may,  if  the  facts  justify  it  in  his  judgment,  insti- 
tute proceedings  in  the  courts  against  such  corporation. 

SEC.  .10319.  If  any  corporation,  foreign  or  domestic, 
authorized  to  do  business  in  this  state,  is  found  guilty 
of  unfair  discrimination,  within  the  terms  of  this  article, 
it  shall  be  the  duty  of  the  secretary  of  state  to  immedi- 
ately revoke  the  permit  of  such  corporation  to  do  business 
in  this  state. 

SEC.  10320.  If,  after  revocation  of  its  permit,  such 
corporation,  or  any  other  corporation  not  having  a  per- 
mit, and  found  guilty  of  having  violated  any  of  the 
provisions  of  this  article,  shall  continue  or  attempt  to 
do  business  in  this  state,  it  shall  be  the  duty  of  the  attor- 
ney-general, by  a  -proper  suit  in  the  name  of  the  state  of 
Missouri,  to  oust  such  corporation  from  all  business  of 
every  kind  and  character  in  said  state  of  Missouri. 

SEC.  10321.  Nothing  in  this  article  shall  be  construed 
as  repealing  any  other  act,  or  part  of  act,  but  the  reme- 


MISSOURI.  179 

dies  herein  provided  shall  be  cumulative  to  all  other 
remedies  provided  by  law. 

SEC.  10322.  It  shall  be  the  duty  of  the  secretary  of  state, 
on  or  about  the  first  day  of  July  of  each  year,  to  address 
to  the  president,  secretary  or  managing  officer  of  each 
incorporated  company  in  this  state,  a  letter  of  inquiry  as 
to  whether  the  said  corporation  has  all  or  any  part  of  its 
business  or  interest  in  or  with  any  trust,  combination 
or  association  of  persons  or  stockholders,  as  named  in  the 
preceding  provisions  of  this  chapter,  and  to  require  an 
answer,  under  oath,  of  the  president,  secretary  or  man- 
aging officer  of  said  company.  A  form  of  affidavit  shall 
be  enclosed  in  said  letter  of  inquiry,  as  follows: 

AFFIDAVIT. 

State  of  Missouri,  County  of ,  ss. 

I, ,  do  solemnly  swear  that  I  am  the 

(president,  secretary  or  managing  officer)  of  the  corpora- 
tion known  and  styled ,  duly  incorporated  un- 
der the  laws  of on  the day  of , 

19 ,  and  now  transacting  or  conducting  business  in  the 

state  of  Missouri,  and  that  I  am  duly  authorized  to  rep- 
resent said  corporation  in  the  making  of  this  affidavit, 

and  I  do  further  swear  that  the  said ,  known 

and  styled  as  aforesaid,  is  not  now  and  has  not  at  any 
time  within  one  year  from  the  date  of  this  affidavit,  cre- 
ated, entered  into,  become  a  member  of  or  participated  in 
any  pool,  trust,  agreement,  combination,  confederation 
or  understanding  with  any  other  corporation,  partner- 
ship, individual,  or  any  other  person  or  association  of 
persons,  to  regulate  or  fix  the  price  of  any  article  of  man- 
ufacture, mechanism,  merchandise,  commodity,  conven- 
ience, repair,  any  product  of  mining,  or  any  article  or 
thing  whatsoever,  or  the  price  or  premium  to  be  paid  for 
insuring  property  against  loss  or  damage  by  fire,  light- 
ning (or)  or  storm;  and  that  it  has  not  entered  into,  or 
become  a  member  of  or  a  party  to  any  pool,  trust,  agree- 
ment, contract,  combination  or  confederation  to  fix  or 
limit  the  amount  or  quantity  of  any  article  of  manufac- 
ture, mechanism,  merchandise,  commodity,  convenience, 
repair,  any  product  of  mining,  or  any  article  or  thing 
whatsoever,  or  the  price  (or)  premium  to  be  paid  for  in- 
suring property  against  loss  or  damage  by  fire,  lightning 
or  storm  ;  and  that  it  has  not  issued  and  does  not  own  any 


180  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

trust  certificates,  and  for  any  corporation,  agent,  officer 
or  employee,  or  for  the  directors  or  stockholders  of  any 
corporation,  has  not  entered  into  and  is  not  now  in  any 
combination,  contract  or  agreement  with  any  person  or 
persons,  corporation  or  corporations,  or  with  any  stock- 
holder or  director  thereof,  the  purpose  and  effect  of  which 
said  combination,  contract  or  agreement  would  be  to 
place  the  management  or  control  of  such  combination  or 
combinations,  or  the  manufactured  product  thereof,  in 
the  hands  of  any  trustee  or  trustees,  with  the  intent  to 
limit  or  fix  the  price  or  lessen  the  production  and  sale  of 
any  article  of  commerce,  use  or  consumption,  or  prevent, 
restrict  or  diminish  the  manufacture  or  output  of  any 
article;  and  that  it  has  not  made  or  entered  into  any  (ar- 
rangement) contract  or  agreement  with  any  person,  asso- 
ciation or  persons  or  corporation  designed  to  lessen  (or) 
which  tends  to  lessen,  full  and  free  competition  in  the 
importation,  manufacture  or  sale  of  any  article,  product 
or  commodity  in  this  state,  or  under  the  terms  of  which 
it  is  proposed,  stipulated,  provided,  agreed  or  understood 
that  any  particular  or  specified  article,  product  or  com- 
modity shall  be  dealt  in,  sold  or  offered  for  sale  in  this 
state  to  the  exclusion  in  whole  or  in  part,  of  any  compet- 
ing article,  "product  or  commodity. 


(President,  Secretary  or  Managing  Officer.) 

Subscribed   and   sworn  to   before   me,   a   , 

within  and   for  the  count}'  of ,  this 

day  of ,  19__. 

(Seal.) 

And  thereupon  it  shall  become  the  duty  of  such  corpo- 
ration to  make,  answer  to  such  inquiry  by  filing  or  causing 
to  be  filed  the  affidavit  prescribed  herein.  And  on  re- 
fusal to  make  oath  in  answer  to  said  inquiry,  or  on  fail- 
ure to  do  so  within  thirty  days  from  the  mailing  thereof, 
the  secretary  of  state  shall  certify  said  fact  to  the  prose- 
cuting attorney  of  the  county  (the  circuit  attorney  in  the 
city  of  St.  Louis)  wherein  said  corporation  is  located,  and 
it  shall  be  the  duty  of  such  prosecuting  attorney  or  cir- 
cuit attorney,  at  the  earliest  practicable  moment,  in  the 
name  of  the  state,  and  at  the  relation  of  said  prosecut- 
ing or  circuit  attorney,  to  proceed  against  such  corpora- 
tion for  the  forfeiture  of  its  charter  or  certificate  of  in- 
corporation, or  its  right  or  privilege  to  do  business  in 
this  state;  provided,  however,  that  if  such  corporation 


MISSOUEI.  181 

shall  file  the  affidavit  required  by  the  provisions  of  this 
article  prior  to  the  rendition  of  final  judgment  in  said 
action,  the  court  may  assess  against  such  corporation,  in 
lieu  of  a  judgment  forfeiting  its  charter  or  certificate  of 
incorporation,  or  its  right  or  privilege  to  do  business  in 
this  state,  a  fine  not  to  exceed  five  thousand  ($5,000) 
dollars,  and  not  less  than  one  hundred  ($100)  dollars; 
provided,  however,  that  any  time  before  final  judgment, 
if  such  corporation  shall  file  or  cause  to  be  filed  with  the 
secretary  of  state  the  affidavit  herein  prescribed,  the  trial 
court  may,  in  his  discretion,  and  for  good  cause  shown, 
upon  the  payment  of  all  costs,  together  with  the  attor- 
ney's fees  of  ten  dollars,  to  be  paid  to  the  prosecuting  at- 
torney (or  the  circuit  attorney  in  the  city  of  St.  Louis) 
remit  the  penalty  herein  prescribed. 

SEC.  10323.  The  affidavit  required  by  this  article  shall 
be  made  by  the  president,  secretary,  treasurer  or  manag- 
ing officer  of  such  corporation  in  this  state,  and  shall  be 
made  before  some  person  authorized  to  administer  oaths 
in  this  state. 

SEC.  10324.  Every  person  who  shall  make,  or  cause  to 
be  made,  and  file  or  cause  to  be  filed,  said  affidavit,  know- 
ing the  facts  stated  therein  to  be  false,  shall,  on  convic- 
tion, be  adjudged  guilty  of  perjury,  and  shall  be  pun- 
ished by  imprisonment  in  the  penitentiary  for  a  term  not 
exceeding  seven  years. 

SEC.  10325.  It  shall  be  the  duty  of  the  secretary  of  state, 
at  any  time  upon  satisfactory  evidence  that  any  company 
or  association  of  persons  duly  incorporated  under  the 
laws  of  this  or  any  other  state,  doing  business  in  this  state, 
has  entered  into  any  trust  (,)  combination  or  association, 
in  violation  of  the  preceding  sections  of  this  article,  to 
demand  that  it  shall  make  the  affidavit  as  above  set  forth 
in  this  article  as  to  the  conduct  of  its  business.  In  case 
of  a  failure  of  compliance  on  the  part  of  the  corporation, 
then  the  same  procedure  shall  ensue  as  is  provided  in 
section  8980  of  this  article ;  provided,  that  no  person  shall 
be  subject  to  any  criminal  prosecution  on  account  of  any 
matter  or  thing  truthfully  disclosed  by  the  affidavit  re- 
quired by  this  article ;  and  provided  further,  that  in  any 
prosecution  or  proceeding  brought  to  enforce  the  provi- 
sion of  this  article,  no  witness  shall  be  permitted  to  refuse 
to  answer  any  question  material  to  the  matter  in  con- 
troversy, or  shall  be  permitted  to  refuse  to  produce  any 
books  or  papers  material  to  such  inquiry  upon  the  ground 


182  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

that  to  produce  such  books  and  papers  or  to  answer  such 
question  might  tend  to  incriminate  him  or  subject  him  to 
a  penalty  or  a  forfeiture;  but  no  person  shall  be  subject 
to  prosecution  or  to  any  action  for  a  penalty  or  a  for- 
feiture on  account  of  any  transaction,  matter  or  thing 
concerning  which  he  may  testify  or  produce  books  or 
papers. 

SEC.  10326.  It  shall  be  the  duty  of  the  attorney-general, 
the  circuit  attorney  of  the  city  of  St.  Louis,  and  the  pros- 
ecuting attorney  of  each  county,  respectively,  to  enforce 
the  provisions  of  this  article.  The  attorney-general,  the 
circuit  or  prosecuting  attorneys  shall  institute  and  con- 
duct all  suits  begun  in  the  circuit  courts,  and  upon  appeal 
the  attorney-general  shall  prosecute  said  suits  in  the 
supreme  court  and  courts  of  appeal.  As  compensation 
for  his  services  in  this  behalf,  the  attorney-general  shall 
be  entitled  to  his  actual  expenses  incurred  in  the  (prose- 
cution) of  such  suits,  to  be  paid  by  the  defendant  or  de- 
fendants when  judgment  is  rendered  for  the  state.  The 
circuit  and  prosecuting  attorneys  shall  receive  for  their 
compensation  one-fourth  of  the  penalty  collected. 

SEC.  10327.  In  all  suits  instituted  under  this  article  to 
forfeit  the  charter  of  corporations,  or  to  forfeit  the  right 
of  a  corporation  to  do  business  in  this  state,  where  a  judg- 
ment of  forfeiture  is  obtained  and  the  cause  is  not  appealed 
to  the  supreme  court  or  court  of  appeals,  the  circuit  court 
rendering  such  judgment  shall  allow  the  circuit  or  prose- 
cuting attorney  a  fee  of  not  less  than  twenty-five  ($25) 
dollars  nor  more  than  five  hundred  ($500)  dollars,  to  be 
paid  out  of  the  assets  of  said  corporation ;  and  when  the 
attorney-general  takes  part  in  said  prosecution,  he  shall 
be  entitled  to  his  actual  expenses,  to  be  paid  in  like 
manner. 

SEC.  10328.  It  is  hereby  made  the  duty  of  all  county 
officers  in  the  state  to  furnish  to  the  secretary  of  state  any 
information  which  he  may  request  of  them,  to  enable  him 
the  more  fully  to  execute  the  duties  imposed  upon  him 
by  this  article,  and  for  such  services  the  said  county  offi- 
cer (s)  shall  be  paid  by  their  respective  counties,  upon  al- 
lowances by  the  county  court,  such  fees  as  would  accrue 
for  like  services  for  the  county. 

SEC.  10329.  Whenever  any  proceeding  shall  be  com- 
menced in  any  court  of  competent  jurisdiction  in  this  state 
by  the  attorney-general  against  any  corporation  or  corpo- 
rations, individual  or  individuals,  or  associations  of 


MISSOURI.  183 

individuals,  or  joint  stock  associations  or  co-part- 
nership, under  the  law  against  the  formation  and 
maintenance  of  pools,  trusts  of  any  kind,  monop- 
olies in  commodities,  -combinations  or  organizations 
in  restraint  of  trade,*  to  dissolve  the  same  or  to 
restrain  their  formation  or  maintenance  in  this  state, 
then  in  such  case,  if  the  attorney-general  desires  to  take 
the  testimony  of  any  officer,  director,  agent  or  employee 
of  any  corporation  or  joint  stock  association  proceeded 
against,  or  in  case  of  a  co-partnership,  any  member  of 
said  partnership,  or  any  employee  thereof,  in  any  court 
in  which  said  action  may  be  pending  or  before  any  person 
duly  authorized  by  any  court  to  take  testimony  in  any 
such  action;  and  the  individual  or  individuals,  whose 
testimony  is  desired,  are  without  the  jurisdiction  of  the 
courts  of  this  state,  or  reside  without  the  state  of  Missouri, 
then,  in  such  case,  the  attorney-general  shall  file  in  said 
court,  in  term  time,  or  in  vacation,  or  with  any  person, 
duly  authorized  to  take  the  testimony  in  such  case,  a 
statement,  in  writing,  setting  forth  the  name  or  names 
of  the  persons  or  individuals  whose  testimony  he  desires 
to  take,  and  the  time  when,  and  the  place  in  the  state 
where  he  desires  the  said  persons  to  appear;  and,  there- 
upon, the  court  in  which,  or  one  of  the  judges  thereof,  or 
the  person  before  whom  testimony  is  being  taken,  shall 
issue  immediately  a  notice,  in  writing,  directed  to  the 
attorney  or  attorneys  of  record  in  said  cause,  or  any 
agent,  officer  or  employee  of  any  corporation,  joint  stock 
association  or  co-partnership  which  are  parties  to  said 
action,  notifying  said  attorneys  of  record,  or  officer,  agent 
or  employee,  that  the  testimony  of  the  person  or  persons 
named  in  the  application  of  the  attorney-general  is  de- 
sired, and  requiring  said  attorney  or  attorneys  of  record, 
or  said  officer,  agent  or  employee,  to  whom  said  notice 
is  delivered,  or  upon  whom  j:he  same  is  served,  to  have 
said  officer,  agent  or  employee  or  representative  of  said 
co-partnership  or  agent  thereof,  whose  evidence  it  is  de- 
sired to  take  at  the  place  named  in  the  application  of  the 
attorney-general,  and  at  the  time  fixed  in  said  applica- 
tion, then  and  there  to  testify;  provided,  however,  that 
the  said  application  shall  always  allow  in  fixing  said 
time,  the  same  number  of  days  for  travel  to  reach  the  des- 
ignated point  in  Missouri  that  would  be  now  allowed  by 
law  in  case  of  taking  depositions;  provided,  also,  in  ad- 


184  LAWS  ON   TKUSTS  AND   MONOPOLIES. 

dition  to  the  above  named  time,  six  days  shall  be  allowed 
for  the  attorney  or  attorneys  of  record,  or  the  agent, 
officer  or  employee  on  whom  notice  is  served,  to  notify 
the  person  or  persons  whose  testimony  is  to  be  taken. 
Service  of  such  notice  and  the  return  thereon,  in  writing, 
may  be  made  by  any  one  authorized  by  law  to  serve  a 
subpoena;  provided,  that  no  such  witness  shall  be  per- 
mitted to  refuse  to  produce  any  books  or  papers  in  ac- 
cordance with  an  order  made  under  the  provisions  of  this 
article,  or  to  answer  any  question  in  reference  to  the  sub- 
ject-matter of  such  litigation,  upon  the  ground  that  to 
produce  such  books  and  papers,  or  to  answer  such  ques- 
tions, would  tend  to  incriminate  him  or  subject  him  to  a 
penalty  or  a  forfeiture;  but  no  such  witness  shall  be 
liable  to  prosecution,  or  subject  to  an  action  of  penalty 
or  forfeiture  on  account  of  any  transaction,  matter  or 
thing  concerning  which  he  may  testify  or  produce  books 
or  papers. 

SEC.  10330.  Whenever  any  attorney  or  attorneys  of 
record,  or  any  agent,  officer  or  employee  of  any 
such  corporation,  joint  stock  association  or  co-part- 
nership, shall  be  notified,  as  above  provided,  to  request 
any  officer,  agent,  director  or  employee  to  attend  before 
any  court  or  before  any  person  authorized  to  take  the 
testimony  in  said  proceeding,  and  the  person  or  persons 
whcse  testimony  is  requested  as  above  provided,  shall  fail 
to  appear  and  testify  and  produce  whatever  books,  papers 
and  documents  they  may  be  ordered  to  produce  by  the 
court,  or  the  officer  authorized  to  take  said  evidence,  then 
it  shall  be  the  duty  of  the  court,  upon  the  motion  of  the 
attorney-general,  to  strike  out  the  answer,  motion,  reply, 
demurrer  or  other  pleading  then  or  thereafter  filed  in 
said  action  or  proceeding  by  said  corporation,  joint  stock 
association  or  co-partnership,  whose  officer,  agent,  direc- 
tor or  employee  has  neglected  or  failed  to  attend  and  to 
testify  and  produce  all  books,  papers  and  documents  he 
or  they  shall  have  been  ordered  to  produce  in  said  action 
by  the  court  or  person  authorized  to  take  said  testimony ; 
.  and  said  court  shall  proceed  to  render  judgment  by  de- 
fault against  said  corporation,  joint  stock  association  or 
co-partnership. 

SEC.  10331.  And  it  is  further  provided,  that  in 
case  any  officer,  agent,  employee,  director  or  representa- 
tive of  any  corporation,  joint  stock  association  or  co- 
partnership in  such  proceeding  as  hereinbefore  men- 


MISSOURI.  185 

tioned,  who  shall  reside  or  be  found  within  this  state, 
shall  be  subpoenaed  to  appear  and  testify  or  to  produce 
papers,  books  and  documents,  and  shall  fail,  neglect  or 
refuse  to  do  so,  then  the  answer,  motion,  demurrer  or 
other  pleading  then  or  thereafter  filed  by  said  corporation, 
joint  stock  association  or  co-partnership  in  any  such 
proceeding  shall,  on  motion  of  the  attorney-general,  be 
stricken  out  and  judgment  in  said  cause  rendered  against 
said  corporation,  joint  stock  association  or  co-partner- 
ship. 

SEC.  10332.  For  the  purpose  of  determining  whether  an 
action  or  proceeding  should  be  commenced  against  any 
pool,  trust,  conspiracy  or  combination  in  restraint  of 
trade,  the  attorney-general  may  examine  and  procure  the 
testimony  of  witnesses  in  the  manner  herein  prescribed. 

SEC.  10333.  Whenever  the  attorney-general  deems  it 
necessary  or  proper  before  beginning  any  action  or  pro- 
ceeding against  any  pool,  trust  conspiracy  or  combination 
made,  arranged,  agred  upon  or  entered  into  whereby  a 
monopoly  in  the  manufacture,  production  or  sale  in  this 
state  of  any  article  or  commodity  is  or  may  be  sought  to 
be  created,  established  or  maintained,  or  whereby  compe- 
tition in  this  state  in  the  supply  or  price  of  any  article  or 
commodity  is  or  may  be  restrained  or  prevented,  then  in 
such  case  the  attorney-general  may  present  to  any  justice 
of  the  supreme  court  an  application,  in  writing,  for  an 
order  directing  such  persons,  as  the  attorney-general  may 
require,  to  appear  before  a  justice  of  the  supreme  court  or 
any  examiner  designated  in  said  order  and  answer  such 
relevant  and  material  questions  as  may  be  put  to  them 
concerning  any  illegal  contract,  arrangement,  agreement 
or  combination  in  violation  of  the  laws  of  this  state 
against  pools,  trusts,  agreements,  combinations  and  con- 
spiracies in  restraint  of  trade,  or  to  regulate,  fix  or 
maintain  the  price  of  any  commodity  or  to  create  a  mo- 
nopoly therein,  if  it  appears  to  the  satisfaction  of  the 
justice  of  the  supreme  court  to  whom  the  application  for 
the  order  is  made  that  such  an  order  is  necessary  or  expe- 
dient, then  such  order  shall  be  granted.  Such  order  shall 
be  granted  without  notice,  unless  notice  is  required  to  be 
given  by  the  justice  of  the  supreme  court  to  whom  the 
application  is  made,  in  which  event  an  order  to  show 
cause  why  such  application  should  not  be  granted  shall  . 
be  made  containing  such  preliminary  injunction  or  stay 
as  may  appear  to  said  justice  to  be  proper  or  expedient, 


186  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

and  shall  specify  the  time  when  and  the  place  where  the 
witnesses  are  required  to  appear,  and  such  examination 
shall  be  held  in  the  city  of  Jefferson.  The  justice  of  the 
supreme  court  or  the  examiner  may  adjourn  such  exami- 
nation from  time  to  time  and  witnesses  must  attend  ac- 
cordingly. 

SEC.  10334.  The  order  for  such  examination  must  be 
signed  by  the  justice  making  it;  and  the  service  of  a  copy 
thereof,  with  an  endorsement  by  the  attorney-general 
signed  by  him,  to  the  effect  that  the  person  named 
therein  is  required  to  appear  and  be  examined 
at  the  time  and  place  and  before  the  justice  or 
referee  specified  in  such  endorsement,  shall  be  suffi- 
cient notice  for  the  attendance  of  witnesses.  Such  en- 
dorsement may  contain  a  clause  requiring  such  person 
to  produce  on  such  examination  all  books,  papers  and 
documents  in  his  possession  or  under  his  control  relating 
to  the  subject  of  such  examination;  provided,  however, 
that  the  production  of  books  and  papers  for  inspection 
shall  always  be  subject  to  the  order  of  the  supreme  jus- 
tice who  has  ordered  such  examination,  and  either  party 
may,  by  a  petition,  in  writing,  ask  that  the  said  justice 
pass  on  the  question  as  to  whether  or  not  said  books  and 
papers  should  be  produced  and  examined  and  introduced 
in  evidence.  The  order  to  appear  as  a  witness  may  be 
served  and  return  of  service  made  in  the  same  manner 
and  by  the  same  officer  by  whom  a  subpoena  may  now  be 
served. 

SEC.  10335.  The  testimony  of  each  witness  must  be  sub- 
scribed by  him,  and  all  testimony  taken  by  such  justice  or 
examiner  appointed  must  be  certified  and  delivered  by 
such  justice  or  examiner  to  the  attorney-general  at  the 
close  of  the  examination.  The  justice  or  examiner  shall 
cause  said  testimony  to  be  taken  down  by  a  competent 
stenographer ;  provided,  that  no  witness  shall  be  permit- 
ted to  refuse  to  produce  books  or  papers  in  accordance 
with  an  order  made  under  the  provision  of  this  article,  or 
to  answer  any  questions  in  reference  to  the  subject-matter 
of  such  litigation  upon  the  ground  that  to  produce  such 
books  and  papers  or  to  answer  such  questions  would  tend 
to  incriminate  him  or  subject  him  to  a  penalty  or  a  for- 
feiture ;  but  no  such  witness  shall  be  liable  to  prosecution, 
or  subject  to  an  action  of  penalty  or  forfeiture  on  account 
of  any  transaction,  matter  or  thing  concerning  which  he 
may  testify  or  produce  books  or  papers. 


MISSOURI.  187 

SEC.  10336.  An  examiner  appointed  under  this  article 
shall  have  his  power  and  authority  specified  in  the  order 
appointing  him.  And  he  shall  have  all  the  ordinary 
power  and  authority  of  an  examiner  appointed  by  the 
supreme  court,  in  addition  to  what  special  duties  may  be 
devolved  on  him  by  the  order  of  appointment. 

SEC.  10337.  If  any  witness  or  witnesses  be  properly 
served,  as  herein  provided,  with  notice  to  appear  and  tes- 
tify, and  they  fail  to  obey  said  notice,  or  appearing,  re- 
fuse to  testify,  the  attorney-general  may  file  a  statement, 
in  writing,  with  the  supreme  court  justice  setting  out  such 
facts,  and  said  justice  may,  if  he  deems  it  proper,  issue  a 
citation  to  said  parties  causing  them  to  forthwith  appear 
and  show  cause  why  he  or  they  should  not  be  fined  or  im- 
prisoned, or  both,  for  contempt.  And  in  such  contempt 
proceedings  the  justice  of  the  supreme  court  shall  have 
full  power  to  either  fine  or  imprison  or  both,  as  a  punish- 
ment for  either  failing  to  appear  and  testify,  or  appear- 
ing, failing  to  testify,  or  to  produce  books  and  papers 
when  so  ordered  to  do. 

SEC.  10338.  The  supreme  court  justice  may  make  such 
order  concerning  the  taxation  and  payment  of  costs  in 
these  proceedings  against  either  the  state  of  Missouri  or 
the  person  examined,  or  any  corporation,  co-partnership, 
joint  stock  company  or  combination  of  persons  interested 
in  or  connected  in  any  way  with  the  subject  of  such  exam- 
ination. Costs  taxed  shall  be  collected  in  the  ordinary 
way  costs  are  now  collected  in  the  supreme  court,  and  an 
itemized  statement  thereof  shall  be  filed  with  the  clerk 
of  the  supreme  court,  to  whom  all  costs  must  be  paid. 

COURT  DECISIONS. 

State  ex  rel.  Crow,  Attorney- General  v.  JEtna  Insur- 
ance Co.  et  al.  Same  v.  American  Cent.  Insurance  Co., 
51  S.  W.  Rep.,  413. 

National  Lead  Co.  v.  S.  E.  Grote  Paint-Store  Co.,  St. 
Louis  Court  of  Appeals,  May  2,  1899. 

State  ex  rel.  Crow,  Attorney-General  v.  Firemen's 
Fund  Insurance  Co.  et  al.,  152  Mo.,  1 ;  52  S.  W.  Rep.,  595. 

State  ex  rel.  Crow  v.  Armour  Packing  Co.,  173  Mo., 
356;  61  L.  R.  A.,  464. 

National  Lead  Company  v.  S.  E.  Grote  Paint  Store  Co.. 
80  Mo.  App.,  247. 


188  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

Froelich  v.  Musicians'  Mut.  Ben.  Asso.,  93  Mo.  App., 
383. 

*  Walsh  v.  Association  of  Master  Plumbers,  97  Mo.  App., 
280. 

State  ex  rel.  Crow  v.  Continental  Tobacco  Co.,  177 
Mo.,  1. 


MONTANA. 

CONSTITUTION. 

ART.  XV,  SEC.  20.  No  incorporation,  stock  company, 
person  or  association  of  persons  in  the  State  of  Montana 
shall  directly  or  indirectly  combine  or  form  what  is 
known  as  a  trust,  or  make  any  contract  with  any  person, 
or  persons,  corporations,  or  stock  company,  foreign  or 
domestic,  through  their  stockholders,  trustees  or  in  any 
manner  whatever,  for  the  purpose  of  fixing  the  price  or 
regulating  the  production  of  any  article  of  commerce,  or 
of  the  product  of  the  soil,  for  consumption  by  the  people. 
The  legislative  assembly  shall  pass  laws  for  the  enforce- 
ment thereof  by  adequate  penalties  to  the  extent,  if  neces- 
sary for  that  purpose,  of  the  forfeiture  of  their  property 
and  franchises,  and  in  case  of  foreign  corporations  pro- 
hibiting them  from  carrying  on  business  in  the  state. 

STATUTES. 

Every  person,  corporation,  stock  company  or  associa- 
tion of  persons  in  this  state  who,  directly  or  indirectly, 
combine  or  form  what  is  known  as  a  trust,  or  make  any 
contract  with  any  person  or  persons,  corporation  or 
stock  companies,  foreign  or  domestic,  through  their 
stockholders,  directors,  officers  or  in  any  manner  what- 
ever, for  the  purpose  of  fixing  the  price  or  regulating  the 
production  of  any  article  of  commerce. — "The  phrase" 
i  articles  of  commerce '  as  herein  employed  shall  and  does 
include  not  only  those  articles  which  are  generally,  pop- 
ularly and  legally  known  as  articles  of  commerce,  but 
also  gas,  water,  waterpower,  electric  light  and  electric 
power  for  whatever  purpose  used  or  employed  " — or  of 
the  product  of  the  soil  for  consumption  by  the  people,  or 
to  create  or  carry  out  any  restriction  in  trade,  to  limit 
productions,  or  increase  or  reduce  the  price  of  merchan- 
dise or  commodities,  or  to  prevent  competition  in  mer- 
chandise or  commodities,  or  to  fix  a  standard  or  figure 
whereby  the  price  of  any  article  of  merchandise,  commerce 

189 


190  LAWS    ON    TRUSTS    AND   MONOPOLIES. 

or  product,  intended  for  sale,  use  or  consumption,  will  be 
in  any  way  controlled,  or  to  create  a  monopoly  in  the 
manufacture,  sale  or  transportation  of  any  such  article 
or  to  enter  into  an  obligation  by  which  they  shall  bind 
others  or  themselves  not  to  manufacture,  sell  or  transport 
any  such  articles  below  a  common  standard  or  figure  or 
by  which  they  agree  to  keep  such  article  or  transporta- 
tion at  a  fixed  or  graduated  figure,  or  by  which  they  settle 
the  price  of  such  article,  so  as  to  preclude  unrestricted 
competition,  is  punishable  by  imprisonment  in  the  county 
jail  for  a  period  not  less  than  twenty-four  hours,  or  more 
than  one  year,  or  by  fine  not  exceeding  twentj^-five  thou- 
sand dollars,  or  both.  (L.  1909,  c.  97,  Sec.  1.) 

The  provisions  of  this  Act  do  not  apply  to  any  arrange- 
ments, agreement,  or  combination  between  laborers,  made 
with  the  object  of  lessening  the  number  of  hours  of  labor 
or  increasing  wages.  (Id.,  Sec.  2.) 

No  person  shall  be  excused  from  testifying  in  any 
prosecution  brought  pursuant  to  the  provisions  of  this 
Act,  but  no  person  testifying  for  the  prosecution  shall 
be  punished  or  prosecuted  in  any  manner  whatsoever 
for  any  act  committed  by  him  personally,  as  to  which  he 
is  called  upon  to  testify  in  a  prosecution  against  any  per- 
son or  corporation,  stock  company  or  association.  (Id., 
Sec.  3.) 

[Chapter  7,  Acts  1913.] 

A  BILL  For  an  Act  entitled :  "An  Act  to  prohibit  unfair  compe- 
tition and  discrimination,  and  providing  a  penalty  for  the  in- 
fraction of  the  provisions  thereof." 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of 

Montana : 

SECTION  1.  Any  person,  firm  or  corporation,  foreign 
or  domestic,  doing  business  in  the  State  of  Montana,  and 
engaged  in  the  production,  manufacture  or  distribution 
of  any  commodity  in  general  use,  that  intentionally,  for 
the  purpose  of  destroying  the  competition  of  any  regu- 
larly established  dealer  in  such  commodity,  or  to  prevent 
the  competition  of  any  person,  firm  or  corporation  who  in 
good  faith  intends  and  attempts  to  become  such  dealer, 
shall  discriminate, between  different  sections,  communi- 
ties or  parts  of  this  State,  by  selling  such  commodity  at 
a  lower  rate  or  price  in  one  section,  city  or  community, 
or  any  portion  thereof,  than  such  person,  firm  or  corpo- 
ration, foreign  or  domestic,  charges  for  such  commodity 


MONTANA.  191 

in  another  section,  community  or  city,  after  equalizing 
the  distance  from  the  point  of  production,  manufacture 
or  distribution  and  freight  rates  therefrom,  shall  be 
deemed  guilty  of  unfair  discrimination. 

SEC.  2.  If 'complaint  shall  be  made  to  the  Attorney 
General  that  any  corporation  is  guilty  of  unfair  discrimi- 
nation as  defined  by  this  Act,  he  shall  forthwith  investi- 
gate such  complaint,  and  for  that  purpose  he  shall  sub- 
poena witnesses,  administer  oaths,  take  testimony  and 
require  the  production  of  books  or  other  documents,  and 
if,  in  his  opinion,  sufficient  grounds  exist  therefor,  he 
shall  prosecute  an  action  in  the  name  of  the  State  in  the 
proper  Court  to  annul  the  charter  or  revoke  the  permit 
of  such  corporation,  as  the  case  may  be,  and  to  perma- 
nently enjoin  such  corporation  from  doing  business  in 
this  State,  and  if  in  such  action  the  Court  shall  find 
that  such  corporation  is  guilty  of  unfair  discrimination  as 
defined  by  this  Act,  such  Court  shall  annul  the  charter  or 
revoke  the  permit  of  such  corporation,  and  may  perma- 
nently enjoin  it  from  transacting  business  in  this  State. 

SEC.  3.  Any  person,  firm  or  corporation  violating  the 
provisions  of  Section  One  (1)  of  this  Act,  whether  as 
principal  or  agent,  shall,  upon  conviction  thereof  be  fined 
not  less  than  Two  Hundred  (200)  Dollars  nor  more  than 
Ten  Thousand  (10,000)  Dollars,  for  each  offense. 

SEC.  4.  Nothing  in  this  Act  shall  be  construed  as  re- 
pealing any  other  Act  or  part  of  an  Act,  but  the  remedies 
herein  provided  shall  be  cumulative  to  all  other  remedies 
provided  by  law. 

SEC.  5.  This  Act  shall  take  effect  and  be  in  force  from 
and  after  its  passage  and  approval. 

Approved  February  6,  1913. 

[Chapter  8,  Acts  1913.] 

A  BILL  For  ail  Act  entitled :  "An  Act  to  prohibit  unfair  compe- 
tition and  discrimination,  and  providing  a  penalty  for  the  in- 
fraction of  the  provisions  thereof." 

Be  it  enacted  ~by  the  Legislative  Assembly  of  the  State  of 

Montana: 

SECTION  1.  Any  person,  firm  or  corporation,  foreign  or 
domestic,  doing  business  in  the  State  of  Montana,  and 
engaged  in  the  buying,  selling,  production,  manufacture 
or  distribution  of  any  commodity  in  general  use,  that  in- 
tentionally, for  the  purpose  of  destroying  the  competition 


192  LAWS  ON   TRUSTS  AND   MONOPOLIES. 

of  any  regularly  established  dealer  in  such  commodity,  or 
to  prevent  the  competition  of  any  person,  firm  or  corpo- 
ration, who  in  good  faith  intends  and  attempts  to  become 
such  dealer,  shall  discriminate  between  different  persons, 
sections  or  communities  in,  or  parts  of  this  State  by  buy- 
ing such  commodity  at  a  higher  rate  or  price  in  one  sec- 
tion, city  or  community,  or  any  portion  thereof,  than  such 
person,  firm  or  corporation,  foreign  or  domestic,  pays  for 
such  commodity  in  another  section,  community  or  city, 
after  equalizing  the  distance  from  the  point  of  produc- 
tion, manufacture  or  distribution  and  freight  rates  there- 
from, shall  be  deemed  guilty  of  unfair  discrimination. 

SEC.  2.  If  complaint  shall  be  made  to  the  Attorney 
General  that  any  corporation  is  guilty  of  unfair  discrimi- 
nation as  defined  by  this  Act,  he  shall  forthwith  investi- 
gate such  complaint,  and  for  that  purpose  he  shall  sub- 
pcena  witnesses,  administer  caths,  take  testimony,  and 
require  the  production  of  books  or  other  documents,  and 
if,  in  his  opinion,  sufficient  grounds  exist  therefor,  he  shall 
prosecute  an  action  in  the  name  of  the  State  in  the  proper 
Court  to  annul  the  charter  or  revoke  the  permit  of  such 
corporation,  as  the  case  may  be,  and  to  permanently  en- 
join such  corporation  from  doing  business  in  this  State; 
and  if  in  such  action  the  court  shall  find  that  such  corpora- 
tion is  guilty  of  unfair  discrimination  as  defined  by  this 
Act,  such  Court  shall  annul  the  charter  or  revoke  the 
permit  of  such  corporation,  and  may  permanently  enjoin 
it  from  transacting  business  in  this  State. 

SEC.  3.  Any  person,  firm  or  corporation  violating  the 
provisions  of  Section  1  (One)  of  this  Act,  whether  as 
principal  or  agent,  shall,  upon  conviction,  thereof  be  fined 
not  less  than  Two  Hundred  ($200)  Dollars,  nor  more 
than  Ten  Thousand  ($10,000)  Dollars,  for  each  offense. 

SEC.  4.  Nothing  in  this  Act  shall  be  construed  as  re- 
pealing any  other  Act  or  part  of  an  Act,  but  the  remedies 
herein  provided  shall  be  cumulative  to  all  other  remedies 
provided  by  law. 

SEC.  5.  This  Act  shall  take  effect  and  be  in  full  force 
from  and  after  its  passage  and  approval. 

Approved  February  6,  1913. 

*    COURT    DECISIONS. 

Mac  Ginnis  v.  Boston  &  Montana  Con.  Mining  Co.,  29 
Mon.,  428. 

State  v.  Cudahy  Packing  Co.  et  al.,  33  Mon.,  179. 


NEBRASKA. 

CON  STITUTION . 

ART.  XI,  SEC.  3.  No  railroad  corporation  or  telegraph 
company  shall  consolidate  its  stock,  property,  franchises, 
or  earnings,  in  whole  or  in  part,  with  any  other  railroad 
corporation  or  telegraph  company  owning  a  parallel  or 
competing  line;  and  in  no  case  shall  any  consolidation 
take  place,  except  upon  public  notice  of  at  least  sixty 
days  to  all  stockholders,  in  such  manner  as  may  be  pro- 
vided by  law. 

STATUTES. 

CHAPTER  91A TRUSTS. 

6281  Section  I.1  That  a  trust  is  a  combination  of 
capital  skilled  or  acts  by  any  person  or  persons  to  fix  the 
price  of  any  article  or  commodity  of  trade,  use  or  mer- 
chandise, with  the  intent  to  prevent  others  from  con- 
ducting or  carrying  on  the  same  business  or  selling  or 
trafficking  in  the  same  article,  use  or  merchandise,  or  a 
combination  of  capital,  skill  or  acts  by  two  or  more  per- 
sons or  by  two  or  more  of  them  for  either,  any  or  all  of 
the  following  purposes :  1.  To  create  or  carry  out  restric- 
tions in  trade.  2.  To  limit  or  reduce  the  production  or 

1  Sec.  1  of  "An  act  to  define  trusts  and  conspiracies  against  trade  and 
business,  declaring  the  same  unlawful  and  void,  and  providing  means  for 
the  suppression  of  the  same,  and  remedies  for  persons  injured  thereby,  and 
to  provide  punishment  for  violations  of  this  act,  and  to  repeal  chapter 
ninety-one  a  (Ola),  entitled  'Trusts,'  of  the  Compiled  Statutes  of  Ne- 
braska for  the  year  1895."  Laws  1897,  chap.  79.  Took  effect  July  10. 
1897.  See  State  v.  Neb.  Dis.  Co.,  29  Neb.,  700;  Mollyneaux  v.  Witten- 
berg, 39  Id.,  547  ;  Downing  v.  Lewis,  56  Id.,  386.  Lumber  dealers'  asso- 
ciations. This  chapter  does  not  grant  special  privileges,  and  is  not  special 
legislation  within  sec.  15,  art.  HI,  Const.  Passage  was  constitutional. 
Clelland  v.  Anderson,  66  Id.,  252.  But  see  Niagara  Fire  Ins.  Co.  v.  Cor- 
nell, 110  Fed.  Rep..  810.  Conspiracy  where  one  is  driven  out  of  business 
a  tort.  Clelland  v.  Anderson,  66  Neb.,  276.  Right  of  action  'passes  to 
assignee  in  bankruptcy.  S.  C.,  75  Id.,  2715.  Art.  1  does  not  limit  art.  2. 
Slate  v.  Omaha  Elevator  Co..  75  Id.,  637.  Agreement  by  lumber  dealer  to 
"  protect  another  by  asking  higher  price,  or  to  divide  territory  and  fix 
prices,''  Is  a  violation  of  statute.  Stato  v.  Adams,  81  Id.,  .".02. 

16491—13 13  193 


194  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

increase  or  reduce  the  price  of  merchandise  or  commodi- 
ties. 3.  To  prevent  competition  in  insurance,  either  life, 
fire,  accident  or  any  other  kind,  or  in  manufacture, 
making,  constructing,  transportation,  sale  or  purchase  of 
merchandise,  produce  or  commodities.  4.  To  fix  at  any 
standard  or  figure,  whereby  its  price  to  the  public  shall 
be  in  any  manner  controlled  or  established  upon  any  arti- 
cle of  merchandise,  produce  or  manufacture  of  any  kind 
intended  for  sale,  use  .or  consumption  in  this  state ;  to 
establish  any  pretended  agency  whereby  the  sale  of  any 
such  article,  commodity,  merchandise  or  product  shall 
be  covered  up,  concealed  or  made  to  appear  to  be  for  the 
original  vendor,  for  a  like  purpose  or  purposes,  and  to 
enable  such  original  vendor,  producer  or  manufacturer 
to  control  the  wholesale  or  retail  price  of  any  such  article 
of  merchandise,  product  or  commodity  after  the  title  to 
the  same  shall  have  passed  from  such  vendor  or  manufac- 
turer. 5.  To  make  or  enter  into,  carry  on  or  carry  out 
any  contract,  obligation  or  agreement  of  any  kind  or 
description  by  which  they  shall  bind,  or  have  heretofore 
bound  themselves  not  to  sell,  dispose  of,  traffic  in  or  trans- 
port any  article  of  merchandise  or  commodity,  or  article 
of  trade,  product,  use,  merchandise,  consumption  or  com- 
merce, below  a  common  standard  figure,  card  or  list  price, 
or  by  which  they  shall  agree  in  any  manner  to  keep  the 
price  of  such  article,  product,  commodity  or  transporta- 
tion, at  a  fixed  or  graduated  figure  or  price,  or  by  which 
they  shall  in  any  manner  establish  or  settle  the  price  of 
any  article  of  merchandise,  commodity,  or  of  insurance, 
fire,  life  or  accident,  or  transportation  between  them  or 
between  themselves  and  others,  or  with  the  intent  to  pre- 
clude, or  the  tendency  of  which  is  to  prevent  or  preclude 
a  free  and  unrestricted  competition  among  themselves  or 
others  or  the  people  generally  in  the  production,  sale, 
'traffic  or  transportation  of  any  such  article  of  merchan- 
dise, product  or  commodity  or  conducting  a  like  business 
or  by  which  they  shall  agree  to  pool,  combine  or  unite  any 
interest  they  may  have  in  connection  with  the  sale,  pro- 
duction or  transportation  of  any  such  article  of  merchan- 
dise, product  or  commodity  or  the  carrying  on  of  any 
such  business,  th^t  its  price  might  in  any  manner  be 
affected  thereby. 

6282-6294  Sees.  2-14.     [Repealed.     State  v.  Elevator 
Co.,  75  Neb.  637.] 


NEBRASKA.  195 

GRAINMEN. 

6295  Sec.  15.1  That  it  shall  be  unlawful  for  any  person, 
partnership,  company,  association  or  corporation  engaged 
in  the  business  of  grain  dealing  or  owning  or  operating  any 
'grain  elevator,  or  in  buying,  selling,  handling,  consigning, 
'shipping  or  transporting  grain,  to  enter  into  any  under- 
standing, contract,  agreement,  or  combination  with  any 
other  persons,  company,  partnership,  association  or  corpo- 
ration, whether  within  or  without  this  state  engaged  in  a 
like  business,  to  form,  enter  into  or  maintain  or  contribute 
money  or  anything  of  value  to  any  trust,  pool,  combina- 
tion or  association  of  persons,  partnerships,  companies, 
associations  or  corporations  of  whatever  name,  which  has 
for  any  of  its  objects  the  prevention  of  competition  among 
buyers,  sellers  or  dealers  in  grain,  or  which  by  any  of  its 
acts,  or  the  acts  of  any  of  its  officers,  members,  agents 
or  employes,  hinders  or  prevents  or  tends  to  hinder  or 
prevent  the  fullest  competition  in  the  purchase,  sale  or 
dealing  in  grain  by  any  person,  partnership,  company, 
association  or  corporation  outside  of,  or  not  a  member  of, 
or  not  doing  business  by  or  through  such  trust,  pool,  com- 
bination or  association,  or  any  of  its  members,  officers, 
agents  or  employes,  or  which  has  for  one  of  its  objects 
the  prevention  of  competition  by  requiring  or  compelling 
its  members  not  to  deal  with  shippers  or  dealers  in  grain 
not  members  of  such  trust,  pool,  combination  or  associa- 
tion ;  or  which  requires  its  members  to  refuse  to  sell,  pur- 
chase or  consign  any  grain,  to  any  person,  company,  part- 
nership or  corporation  which  purchases  or  receives  con- 
signment of  grain  from  any  person,  company  or  corpora- 
tion not  a  member  of  such  trust,  pool,  combination  or 
association,  or  not  doing  business  through  the  same  or 

1  Sees.  15-18.  "An  act  to  prohibit  combinations  among  grain  elevator 
men  and  to  prohibit  any  person,  company,  partnership,  association  or 
corporation  engaged  in  the  business  of  grain  dealing  or  owning  or  oper- 
ating any  grain  elevator,  or  in  the  buying,  selling,  handling,  consigning 
or  transporting  grain  from  entering  into  any  understanding,  contract, 
agreement  or  combination  with  any  other  person,  company,  partnership, 
association  or  corporation  to  form,  enter  into,  maintain  or  contribute  to 
any  trust,  pool,  combination  or  association  of  whatever  name,  having  for 
any  of  its  objects  the  prevention  of  competition  among  buyers,  sellers  or 
dealers  in  grain  not  members  of,  or  not  doing  business  through  such 
trust,  pool,  combination  or  association,  by  means  of  preventing  such  per- 
sons from  finding  a  market  for  their  grain  and  by  intimidating  and  pre- 
venting purchase[r]s  and  exporters  from  buying  from  any  person,  not  a 
member  of  and  not  doing  business  through  such  trust,  pool,  combination 
or  association ;  and  to  provide  a  penalty  for  the  violations  of  this  act." 
Laws  1897,  ch.  80.  Took  effect  July  10,  1897.  See,  also,  sec.  245x12, 
Crim.  Code. 


196  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

any  of  its  members;  or  which  has  for  any  of  its  objects 
the  prevention  of  any  person,  company,  partnership,  asso- 
ciation or  corporation  not  shipping  grain  through  grain 
elevators,  whether  owned  or  operated  by  members  of  such 
trust,  pool,  combination  or  association,  or  not,  from  find- 
ing purchasers  for  their  grain  by  boycotting  or  threaten- 
ing  to  boycott  such  purchasers.  [1897,  chap.  80,  §  1.] 

6296  Sec.  16.    That  in  any  case,  any  person,  company 
partnership,  association,  corporation,  trust,  pool  or  com- 
bination of  whatever  name  shall  do,  cause  to  be  done,  or 
permit  to  be  done,  any  act,  matter  or  thing  in  this  act  pro- 
hibited or  declared  to  be  unlawful,  such  person,  partner- 
ship,  company,   association,   corporation,  trust,  pool  or 
combination  shall  be  liable  to  the  person,  partnership, 
company,  association  or  corporation  injured  thereby  for 
the  full  amount  of  damages  sustained  in  consequence  of 
any  such  violation  of  the  provisions  of  this  act,  together 
with  a  reasonable  attorney  fee.  to  be  fixed  by  the  court, 
in  every  case  of  recovery  to  be  taxed  as  part  of  the  costs 
in  the  case ;  aud  the  property  of  any  person  who  may  be  a 
member  of  or  interested  in  any  such  trust,  pool,  combina- 
tion or  association,  violating  the  provisions  of  this  act 
shall  be  liable  for  the  full  amount  of  such  judgment  and 
may    be   levied    upon    and    sold    to    satisfy    the    same. 
[Id,  §  2.] 

6297  Sec.  17.    Any  person,  partnership,  company,  asso- 
ciation or  corporation  subject  to  the  provisions  of  this  act. 
or  any  trust,  combination,   pool   or  association,  or   any 
director,  officer,  receiver,  trustee,  employe  agent  or  per- 
son, acting  for  or  employed  by  them,  or  either  of  them, 
who  shall  violate  any  of  the  provisions  of  section  1  of 
this  act  shall  be  declared  to  be  guilty  of  a  felony  and  shall 
upon  conviction  thereof  be  fined  in  any  sum  not  less  than 
one  thousand  dollars  and  not  exceeding  two  thousand  dol- 
lars, and  any  person,  officer,  member,  agent  or  employe  of 
any  trust,  combination,  pool  or  association  violating  the 
provisions  of  section  1  of  this  act,  may  in  addition  to  the 
foregoing  fine,  be  sentenced  by  the  court  to  a  period  not 
exceeding  six  months  to  be  served  in  the  penitentiary  of 
the  state.    That  half  of  the  fine  so  imposed  shall  go  to  the 
person  or  persons  who  furnish  information  and  evidence 
on  which  a  conviction  shall  be  founded.     [Id.,  §  3.] 

6298  Sec.  18.  Any  person  who  may  be  aggrieved  or  in- 
jured by  section  1  of  this  act  may  prosecute  the  violator 
in  a  criminal  action  by  his  own  attorney,  without  the  in- 


NEBKASKA.  197 

tervention  of  the  county  attorney,  and  in  case  of  convic- 
tion the  court  shall  allow  a  reasonable  attorney  fee  to  be 
taxed  as  costs  in  the  case.  [Id.,  §  4.] 

CHAPTER    117     (ACTS    1913). 

AN  ACT  To  amend  Section  26  of  Chapter  91A  of  the  Compiled 
Statutes  of  Nebraska  for  1911,  being  Section  3777  of  the  Report 
of  Commission  for  Revision  of  General  Laws  of  Nebraska,  for 
1913,  [C.  A.  S.,  §  12032]  and  to  repeal  said  original  section  as 
it  now  exists. 

Section  1.  That  Section  26  of  Chapter  91A  of  the 
Compiled  Statutes  of  Nebraska  for  1911,  being  Section 
3777  of  the  Report  of  Commission  for  Revision  of  Gen- 
eral Laws  of  Nebraska,  for  1913,  [C.  A.  S.,  §  12012]  be 
and  the  same  is  hereby  amended  to  read  as  follows :  Any 
person,  firm,  or  company,  association  or  corporation,  for- 
eign or  domestic,  doing  business  in  the  state  of  Nebraska 
and  engaged  in  the  production,  manufacture  or  distribu- 
tion of  any  commodity  in  general  use,  that  shall  inten- 
tionally, for  the  purpose  of  destroying  the  business  of  a 
competitor  in  any  locality,  discriminate  between  different 
sections,  communities,  or  cities  of  this  state  by  selling 
such  commodity  at  a  lower  rate  in  one  section,  community 
or  city,  than  is  charged  for  said  commodity  by  said  party 
in  another  section,  community  or  city,  after  making  due 
allowance  for  the  difference,  if  any,  in  the  grade  or  qual- 
ity and  in  the  actual  cost  of  transportation  from  the  point 
of  production,  if  a  raw  product,  or  from  the  point  of 
manufacture,  if  a  manufactured  product,  shall  be  deemed 
guilty  of  unfair  discrimination,  which  is  hereby  prohib- 
ited and  declared  unlawful.  Proof  that  any  person,  firm, 
company,  association  or  corporation  has  been  discrim- 
inating between  different  sections,  communities  and  cities 
of  this  state  by  selling  a  commodity  at  a  lower  rate  in  one 
section,  community  or  city,  than  is  charged  for  said  com- 
modity by  said  party,  in  another  section,  community  or 
city,  after  making  an  allowance  for  the  difference,  if  any, 
in  the  grade  or  quality  and  in  the  actual  cost  of  transpor- 
tation from  the  point  of  production,  if  a  raw  material, 
and  from  the  point  of  manufacture,  if  a  manufactured 
product,  shall  be  prima  facie  evidence  that  the  party  so 
discriminating  is  guilty  of  unfair  discrimination.  Any 
person,  firm,  company,  association,  or  corporation,  for- 


198  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

eign  or  domestic,  doing  business  in  the  State  of  Nebraska 
engaged  in  the  business  of  collecting  or  buying  any  prod- 
uct, commodity  or  property  of  any  kind,  that  shall  inten- 
tionally, for  the  purpose  of  injuring  or  destroying  the 
business  of  a  competitor  in  any  locality,  discriminate  be- 
tween the  different  sections,  communities  or  cities  of  this 
state  by  bu}Ting  any  product,  commodity,  or  property  of 
any  kind,  and  paying  therefor  a  higher  rate  or  price  in 
one  section,  community,  or  city  than  is  paid  for  the  same 
kind  of  product,  commodity  or  property  by  said  party  in 
another  section,  community  or  city,  after  making  due 
allowance  for  the  difference,  if  any,  in  the  grade  or  qual- 
ity and  in  the  actual  cost  of  the  transportation  from  the 
point  where  the  same  is  purchased  to  the  market  where  it 
is  sold,  or  intended  to  be  sold,  shall  be  deemed  guilty  of 
unfair  discrimination,  which  is  hereby  prohibited  and 
declared  unlawful.  Proof  that  any  person,  firm,  com- 
pany, association  or  corporation  has  been  discriminating 
between  different  sections,  communities  and  cities  by  buy- 
ing any  product,  commodity  or  property  of  any  kind,  and 
paying  therefor  a  higher  rate  or  price  in  one  section,  com- 
munity or  city  than  is  paid  for  the  same  kind  of  product, 
commodity  or  property  by  said  party  in  another  section, 
community  or  city,  after  making  due  allowance  for  the 
difference,  if  any,  in  the  grade  or  quality  and  in  the  actual 
cost  of  transportation  from  the  point  where  the  same  is 
purchased  to  the  market  where  same  is  sold  or  intended 
to  be  sold  shall  be  prima  facie  evidence  that  the  party  so 
discriminating  is  guilty  of  unfair  discrimination. 

Sec.  2.  That  section  26  of  Chapter  91A  of  the  Com- 
piled Statutes  of  Nebraska  for  1911,  being  Section  3777 
of  the  Report  of  the  Commission  for  Revision  of  General 
Laws  of  Nebraska,  for  1913,  [C.  A.  S.,  §  12012]  as  it  now 
exists,  be  and  the  same  is  hereby  repealed. 
Approved,  April  15,  1913. 

6301f  Sec.  27.  Any  person,  firm,  company,  association 
or  corporation  violating  any  of  the  provisions  of  the  pre- 
ceding section,  and  any  officer,  agent  or  receiver  of  any 
firm,  company,  association  or  corporation,  or  any  mem- 
ber of  the  same,  or  any  individual,  found  guilty  of  a  vio- 
lation thereof,  shall  be  fined  not  less  than  Five  Hundred 
Dollars  ($500.00)  nor  more  than  Five  Thousand  Dollars 
($5,000.00),  or  be  imprisoned  in  the  county  jail  not  to 
exceed  one  year,  or  suffer  both  penalties.  [Id.,  §  II.] 


NEBRASKA.  199 

6301g  Sec.  28.  All  contracts  or  agreements  made  in  vio- 
lation of  any  of  the  provisions  of  the  two  preceding  sec- 
tions shall  be  void.  [Id.,  §  III.] 

6301h  Sec.  29.  It  shall  be  the  duty  of  the  county  attor- 
neys, in  their  counties,  and  the  attorney  general,  to  en- 
force the  provisions  of  the  preceding  sections  of  this  act 
by  appropriate  actions  in  courts  of  competent  jurisdic- 
tion. [Id.,  §  IV.] 

CHAPTER    114   (ACTS    1913). 

AN  ACT  Amending  Section  12016  of  Cobbey's  Annotated  Statutes 
for  1911,  [C.  S.,  Ch.  91a,  §  30]  relating  to  prosecution  of  cor- 
porations charged  with  unfair  discrimination,  requiring  the 
Attorney  General  to  investigate  upon  complaint,  and  to  repeal 
said  original  section  and  all  acts  and  parts  of  acts  in  conflict 
herewith. 

Section  1.  That  Section  12016  of  Cobbey's  Annotated 
Statutes  for  1911,  [C.  S.,  Ch.  91a,  §  30]  is  hereby  amend- 
ed to  read  as  follows: 

Section  12016.  If  complaint  shall  be  made  to  the  Attor- 
ney General  that  any  corporation  is  guilty  of  unfair  dis- 
crimination as  defined  by  this  act,  he  shall  investigate 
such  complaint  and  for  that  purpose  he  may  subpoena 
witnesses,  administer  oaths,  take  testimony,  and  require 
the  production  of  books  and  other  documents,  and,  if  in 
his  opinion  sufficient  grounds  exist  therefor  he  may  pros- 
ecute an  action  in  the  name  of  the  state  in  the  proper 
court  to  annul  the  charter  or  revoke  the  permit  of  such 
corporation  as  the  case  may  be,  and  to  permanently  en- 
join such  corporation  from  doing  business  in  this  state, 
and  if  in  such  action  the  court  shall  find  that  such  cor- 
poration is  guilty  of  unfair  discrimination  as  defined  by 
this  act,  such  court  shall  annul  the  charter  or  revoke  the 
permit  of  such  corporation,  and  may  permanently  enjoin 
it  from  transacting  business  in  this  state. 

Sec.  2.  That  said  original  section  12016  of  Cobbey's 
Annotated  Statutes  for  1911,  [C.  S.,  Ch.  91a,  §  30]  and 
all  acts  and  parts  of  acts  in  conflict  herewith  are  hereby 
repealed. 

Approved,  April  15,  1913. 

6301  j  Sec.  31.  If  any  corporation,  foreign  or  domestic, 
authorized  to  do  business  in  this  state,  is  found  guilty  of 
unfair  discrimination,  such  finding  shall  cause  a  for- 


200  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

feiture  of  all  the  privileges  and  rights  conferred  by  the 
laws  of  this  state  upon  corporations,  and  shall  bar  its 
right  to  do  business  in  this  state.  [Id.,  §  VI.] 

0301k  Sec.  32.  If  any  corporation  having  been  found 
guilty  of  a  violation  of  any  of  the  provisions  of  this  act, 
shall  continue  or  attempt  to  do  business  in  this  state,  it 
shall  be  the  duty  of  the  attorney  general  by  a  proper 
action  in  the  name  of  the  State  of  Nebraska,  to  oust  such 
corporation  from  all  business  of  every  kind  and  character 
in  this  state.  [Id.,  §  VII.] 

6302  Sec.  33.  Nothing  in  this  act  shall  be  construed  as 
repealing  any  other  act,  or  part  of  act,  but  the  remedies 
herein  provided  shall  be  cumulative  to  all  other  remedies 
provided  by  law.  [Id.,  §  VIII.] 

ARTICLE  II. RESTRAINTS MONOPOLIES,  REBATES. 

0302a  Section  1.  That  every  contract,  combination  in 
the  form  of  trust  or  otherwise,  or  conspiracy  in  restraint 
of  trade  or  commerce,  within  this  state,  is  hereby  declared 
to  be  illegal.  Every  person  who  shall  make  any  such  con- 
tract or  engage  in  any  such  combination  or  conspiracy, 
shall  be  deemed  guilty  of  a  misdemeanor,  and,  on  convic- 
tion thereof,  shall  be  punished  by  fine  not  exceeding  five 
thousand  dollars,  or  by  imprisonment  not  exceeding  one 
year,  or  by  both  said  punishments,  in  the  discretion  of  the 
court.1 

6302b  Sec.  2.  That  every  person  who  shall  monopolize, 
or  attempt  to  monopolize,  or  combine  or  conspire  with 
any  other  person  or  persons,  to  monopolize  any  part  of 
the  trade  or  commerce,  within  this  state,  shall  be  deemed 
guilty  of  a  misdemeanor,  and,  on  conviction  thereof,  shall 
be  punished  by  fine  not  exceeding  five  thousand  dollars, 
or  by  imprisonment  not  exceeding  one  year,  or  by  both 
said  punishments,  in  the  discretion  of  the  court. 

6302c  Sec.  3.  That  any  property  owned  under  any  con- 
tract or  by  any  combination,  or  pursuant  to  any  con- 
spiracy (and  being  the  subject  thereof),  mentioned  in  the 
foregoing  sections  of  this  act,  shall  be  forfeited  to  the 
state. 

1  "An  act  to  protect  .trade  and  commerce  against  unlawful  restraints 
and  monopolies  and  to  prohibit  the  giving  or  receiving  of  rebates  on  the 
transportation  of  property,  and  to  provide  a  penalty  for  the  violation 
thereof."  Laws  1905,  H.  R.  110.  In  effect  July  1,  1905.  Repeals  by  im- 
plication art.  I,  except  sec.  1.  Not  affected  by  sees.  15-18,  chap.  91a,  nor 
sec.  245x12,  Crim.  Code.  State  v.  O.  Elevator  Co.,  75  Neb.,  637.  Indict- 
ments should  allege  acts  complained  of  were  in  restraint  of  trade  within 
this  state.  Proper  respondents.  Howell  v.  State,  83  Id.,  448. 


NEBRASKA.  201 

CHAPTER    145   (ACTS    1913). 

AN  ACT  To  amend  Section  12031  of  Cobbey's  Annotated  Statutes 
of  Nebraska,  1911,  [C.  S.,  Ch.  Ola,  Art.  2,  §  4]  and  to  repeal  said 
original  section  as  now  existing. 

Section  1.  That  Section  12031  of  Cobbey's  Annotated 
Statutes  of  Nebraska  for  the  year  1911  be  amended  so  as 
to  read  as  follows: 

That  no  corporation,  joint  stock  company  or  other  asso- 
ciation, whose  stockholders  are  not  personally  liable  for 
their  debts,  except  corporations  incorporated  under  the 
laws  of  the  state  of  Nebraska,  and  .those  required  by  law 
to  file  annual  reports  with  the  Auditor  of  Public  Ac- 
counts, and  common  carriers  and  corporations  owning  or 
using  property  exclusively  in  connection  with  the  busi- 
ness of  transportation  and  corporations  engaged  in  fur- 
nishing additional  accommodation  to  passengers  as  such 
while  being  carried  by  such  carriers,  shall  engage  in  busi- 
ness within  this  state,  or  continue  to  carry  on  such  busi- 
ness, unless  it  shall  comply  with  the  following  conditions : 
It  shall  file  a  statement  in  the  office  of  the  attorney  gen- 
eral of  this  state,  signed  and  sworn  to  by  its  president,  its 
treasurer,  its  general  manager,  and  a  majority  of  the 
directors,  or  by  persons  exercising  the  powers  usually 
exercised  by  such  officers  and  directors  of  such  corpora- 
tions, joint  stock  companies,  and  other  associations,  on  or 
before  the  15th  day  of  September,  in  the  year  1906,  and 
shall  on  or  before  the  15th  day  of  September,  in  each  year 
thereafter  file  a  like  statement  for  the  year  ending  with 
the  30th  day  of  June  in  said  year,  respectively,  showing: 
(a)  The  amount  of  its  capital  stock,  (b)  The  market 
value  of  the  same,  (c)  How  much  of  the  same  has  been 
paid  in  full  in  cash ;  or,  if  the  same  has  not  been  paid  in 
full  in  cash,  what  has  been  received  by  the  said  corpora- 
tion, joint  stock  company,  or  other  association,  in  lieu 
thereof,  and  the  value  of  whatever  shall  have  been  so 
received  by  it.  (d)  The  names  of  all  the  officers  and 
directors  of  such  corporation,  joint  stock  company,  or 
other  association,  and  all  agents  entrusted  with  the  gen- 
eral management  of  its  affairs,  (e)  The  amount  it  ha? 
paid  in  dividends  during  the  same  period,  the  rate  of  per- 
centage of  such  dividends,  and  times  of  paying  the  same, 
(f)  A  statement  of  all  the  stock  owned  by  it  of  any  other 
corporation,  joint  stock  company,  or  other  association, 
specifying  the  corporation,  joint  stock  company,  or  other 


202  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

association,  and  the  number  of  and  value  of  shares  in  each ; 
the  amount  of  its  own  stock  held  by  other  corporations, 
joint  stock  companies  or  other  associations,  and  the  value 
thereof;  and  the  amount  of  stock  in  other  corporations, 
joint  stock  companies,  or  other  associations  held  in  trust 
for  it  or  in  which  it  has  any  interest,  directly  or  in- 
directly, absolute  or  conditional,  legal  or  equitable,  speci- 
fying the  corporations,  joint  stock  companies  or  other 
associations,  (g)  It  shall  also  on  or  before  the  30th  day 
of  June,  in  the  year  1906,  file  in  the  office  of  the  attorney 
general  of  this  state,  an  undertaking  signed  by  said  offi- 
cers, general  managers,  and  directors,  that  they  will  com- 
ply with  the  provisions  of  this  and  all  other  laws  of  this 
state  in  the  management  of  the  affairs  of  said  corporation, 
joint  companies,  or  other  associations;  and  that  they 
accept  the  provisions  and  liabilities  of  this  act,  and  the 
obligations  by  it  imposed,  so  long  as  they  shall  continue 
to  hold  or  exercise  said  office  or  authority,  and  shall  there- 
after within  ten  days  of  their  entering  upon  the  duties  of 
their  offices,  file  a  like  undertaking  signed  by  every  officer, 
general  manager  and  director  thereof  elected  or  appointed 
to  such  office  or  employment.  This  statement  shall  be  in 
addition  to  all  statements  now  or  hereafter  required  by 
law,  or  by  any  other  public  authority  in  this  state. 

Sec.  2.  That  Section  12031  of  Cobbey's  Annotated  Stat- 
utes of  Nebraska  for  the  year  1911  [C.  S.,  Ch.  91a,  Art.  1, 
§  4]  as  heretofore  existing  be  and  the  same  is  hereby  re- 
pealed. 

Sec.  3.  Whereas  an  emergency  exists,  this  act  shall  take 
effect  and  be  in  force  from  and  after  its  passage  and 
approval. 

Approved,  April  17,  1913. 

6302e  Sec.  5.  The  attorney  general  of  this  state  may  at 
any  time  require  of  any  corporation,  joint  stock  company, 
or  other  association  so,  engaged  any  statement  he  may 
think  fit  in  regard  to  the  conduct  of  its  business.  And  he 
may  especially  require  any  such  corporation,  joint  stock 
company,  or  other  association,  to  give  a  list  of  all  con- 
tracts or  transactions  entered  into  within  the  twelve 
months  preceding  such  requisition,  in  which  it  has  sold 
any  article  or  product,  or  carried  any  article  or  product 
within  this  state  at  a  rate  less  than  the  ordinary  market 
price,  of  [if]  such  article  or  product  had  been  sold  or  car- 
ried by  any  other  person  than  the  party  to  such  transac- 


NEBRASKA.  203 

tion.     And  he  ma}7  further  require  the  reason  for  such 
distinction  and  the  circumstances  attending  the  same. 

6302f  Sec.  6.  That  every  person,  corporation,  joint 
stock  company,  or  other  association  engaged  in  business 
within  the  state,  who  shall  enter  into  any  contract,  com- 
bination or  conspiracy  or  who  shall  give  any  direction  or 
authority  to  do  any  act,  for  the  purpose  of  drawing  out  of 
business  any  other  person  engaged  therein,  or  who  for 
such  purpose  shall  in  the  course  of  such  business  sell  any 
article  or  product  at  less  than  its  fair  market  value,  or  at 
a  less  price  than  it  is  accustomed  to  demand  or  receive 
therefor  in  any  other  place  under  like  conditions ;  or  who 
shall  sell  any  article  upon  a  condition,  contract  or  under- 
taking that  it  shall  not  be  sold  again  by  the  purchaser,  or 
restrain  such  sale  by  the  purchaser,  shall  be  deemed  guilt}r 
of  a  misdemeanor,  and,  on  conviction  thereof,  shall  be 
punished  by  a  fine  not  exceeding  five  thousand  dollars,  or 
by  imprisonment  not  exceeding  one  year,  or  by  both  said 
punishments,  in  the  discretion  of  the  court. 

6302g  Sec.  7.  That  no  corporation,  joint  stock  company, 
or  other  association,  shall  engage  in  business  within  this 
state,  a  majority  of  whose  stock  is  owned  by  or  controlled 
or  held  in  trust  for  any  manufacturing  or  other  corpora- 
tion, which,  in  the  course  of  its  manufacture  or  produc- 
tion, conducts  its  business,  or  any  part  thereof,  in  a  man- 
ner which  would  be  prohibited  by  this  act.  if  it  were  so 
conducted  in  the  course  of  such  business  within  this  state. 

6302h  Sec.  8.  That  all  the  books  of  record  and  papers 
of  every  such  corporation,  joint  stock  company,  or  other 
association,  engaged  in  business  within  this  state,  shall 
be  subject  to  inspection  by  the  attorney  general  of  the 
state,  or  by  any  agent  he  may  designate  for  that  purpose, 
and  such  corporation  joint  stock  company,  or  other  asso- 
ciation shall,  at  such  times  as  he  shall  prescribe,  make 
such  further  returns,  verified  as  aforesaid,  as  shall  be  by 
him  prescribed  either  by  general  regulations  or  by  special 
direction. 

6302i  Sec.  9.  That  any  president,  director,  treasurer, 
officer,  corporator,  copartner,  associate,  or  agent  of  such 
corporation,  joint  stock  company,  or  other  association, 
who  shall  in  its  behalf  do  anything  by  this  act  prohibited 
to  such  corporation,  joint  stock  company,  or  other  associa- 
tion, or  who  shall  support,  vote  for,  aid  and  abet,  or  take 
part  in  doing  such  action  by  said  corporation,  joint  stock 
company,  or  other  association,  or  any  instrumentality 


204  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

thereof,  shall  be  liable  to  the  penalties  by  this  act  pro- 
vided. 

630*2]  See.  10.  That  no  corporation,  joint  stock  com- 
pany, or  other  association,  after  the  30th  day  of  June, 
190(5.  which  shall  manufacture  or  produce  any  article,  for 
sale  or  transportation  within  this  state,  which  shall  do 
any  of  the  acts  or  things  prohibited  to  be  done  by  this 
act.  shall  engage  in  business  within  this  state. 

6302k  Sec.  11.  That  any  corporation,  joint  stock  com- 
pany, or  other  association  that  shall  have  been  twice  ad- 
judged to  have  violated  the  provisions  of  this  act  by  the 
final  judgment  of  any  court  having  jurisdiction  of  the 
question,  in  any  civil  suit  or  proceeding  in  which  said 
corporation,  joint  stock  company,  or  other  association 
shall  have  been  a  party,  who  shall  thereafter  violate  this 
act.  or  who  shall  fail  to  make  the  returns  herein  required 
at  the  times  specified,  shall  no  longer  be  allowed  to  en- 
gage in  business  within  this  state:  Provided,  That  such 
prohibition  shall  only  be  enforced  after  such  corporation, 
joint  stock  company,  or  other  association  shall  have  been 
enjoined  against  further  engaging  in  such  business,  on 
an  information  or  suit  brought  in  a  court  of  competent 
jurisdiction,  by  the  attorney  general  in  behalf  of  this 
state.  It  shall  be  the  duty  of  the  attorney  general  in 
such  case,  unless  he  shall  be  satisfied  that  such  corpora- 
tion, joint  stock  company,  or  other  association  has  de- 
sisted and  abstained  and  will  in  future  desist  and  abstain 
from  such  violation,  to  enforce  the  provision  by  pro- 
ceeding either  by  information  or  by  indictment,  as  he 
may  in  his  discretion  think  best.  Any  corporation,  joint 
stock  company,  or  other  association  which  shall  be 
charged  with  violating  this  act,  and  any  president,  direc- 
tor, treasurer,  officer,  or  agent  thereof,,  nr  '  be  joined  as 
a  party  in  any  proceeding,  civil  or  criminal,  to  enforce 
this  act.  If.  in  the  judgment  of  the  attorney  general,  such 
corporation,  joint  stock  company,  or  other  association 
against  which  any  civil  proceeding  may  be  instituted  be 
one  on  which  the  public  is  so  depending  that  the  inter- 
ruption of  its  business  will  cause  serious  public  loss  or 
inconvenience,  he  may,  in  his  discretion,  refrain  from 
proceeding  to  obtam  a  decree  which  will  absolutely  pre- 
vent the  continuance  of  such  business,  and  may  apply  for 
a  limited  or  conditional  decree,  or  one  to  take  effect  at  a 
future  day.  as  the  public  interest  shall  seem  to  require, 
if.  in  the  judgment *of  the  court  before  whom  such 


NEBRASKA.  205 

proceeding  may  be  pending,  the  interruption  of  the  busi- 
ness of  the  defendant  corporation,  joint  stock  company, 
or  other  association,  will  cause  such  serious  public  loss  or 
inconvenience,  the  court  may  decline  to  enter  an  absolute 
decree  enjoining  it  against  proceeding  with  its  business, 
and  may  enter  a  modified  or  conditional  decree,  or  such 
decree  to  take  effect  at  a  future  time,  as  justice  shall 
require.  The  court  may  also,  in  its  discretion,  enjoin  such 
officers  or  agents  or  servants  of  such  corporation,  joint 
stock  company,  or  other  association  from  continuing  its 
service,  and  enjoin  any  such  corporation,  joint  stock  com- 
pany, or  other  association  from  continuing  their  employ- 
ment therein,  as  the  case  shall  seem  to  require.1 

63021  Sec.  12.  That  any  corporation,  joint  stock  com- 
pany, or  other  association,  and  any  president,  director, 
treasurer,  officer,  corporator,  copartner,  associate,  or  agent 
thereof  who  shall  in  its  behalf,  after  the  30th  day  of  June, 
in  the  year  1006.  engage  in  such  business  in  violation  of 
this  act.  shall  for  each  offense,  in  addition  to  such  penalty 
for  contempt,  as  the  court  in  case  of  disobedience  to  its 
lawful  order  may  impose,  be  punished  by  a  fine  not  ex- 
ceeding five  thousand  dollars,  or  by  imprisonment  not 
exceeding  one  year,  or  by  both  said  punishments,  in  the 
discretion  of  the  court. 

6302m  Sec.  13.  That  every  president,  treasurer,  general 
manager,  agent  or  other  person  usually  exercising  the 
po\\Ters  of  such  officers  of  any  corporation,  joint  stock 
company,  or  other  association,  who  has  himself,  in  his  be- 
half, violated,  united  to  violate,  or  voted  for  or  consented 
to  the  violation  of  any  of  the  provisions  of  this  act,  shall 
thereafter  be  personally  liable  for  all  the  debts  and  obli- 
gations of  any  such  corporation,  joint  stock  company,  or 
other  association,  created  while  such  person  holds  such 
office  or  agency,  whether  under  the  same  or  subsequent 
elections  or  appointments. 

6302n  Sec.  14.  That  it  shall  be  unlawful  for  any  per- 
son or  persons  to  offer,  grant,  or  give,  or  to  solicit,  accept, 
or  receive,  any  rebate,  concession,  or  service  in  respect  of 
the  transportation  of  any  property  within  this  state  by 
airy  common  carrier,  whereby  any  such  property  shall,  by 
any  device  whatever,  be  transported  at  a  less  rate  than 
that  named  in  the  tariffs  published  and  filed  by  such  car- 
rier, as  is  required  by  law  or  charged  others  for  like  serv- 

1  In  action  to  restrain  violation  of  act  court  cannot  in  first  instance 
declare  forfeiture  of  corporate  charter.  State  v.  Omaba.  ~~>  N*eb.,  <».~>4. 


206  LAWS  ON    TKUSTS  AND   MONOPOLIES. 

ice.  Every  person  who  shall  offer,  grant,  or  give  or 
solicit,  accept  or  receive  any  such  rebate,  concession,  or 
service  shall  be  deemed  guilty  of  a  misdemeanor^  and 
on  conviction  thereof,  shall  be  punished  by  a  fine  of  not 
less  than  five  thousand  dollars. 

6302o  Sec.  15.  That  if  any  joint  stock  company,  cor- 
poration, or  combination  or  any  agent  thereof,  shall 
solicit,  accept,  or  receive  any  such  rebate,  concession  or 
service  as  is  hereinbefore  declared  to  be  unlawful,  it  shall 
be  unlawful  thereafter  to  transport  within  this  state  any 
article  owned  or  controlled  by  such  company,  corpora- 
tion, or  combination,  or  produced  or  manufactured  by  it. 
by  whomsoever  the  same  may  be  owned  or  controlled.  If 
any  such  joint  stock  company,  corporation,  or  combina- 
tion, shall  offer,  grant,  or  give  any  special  prices,  induce- 
ments, or  advantages  for  the  sale  of  articles  produced, 
manufactured,  OAviied,  or  controlled  by  it  to  purchasers 
in  any  particular  locality  in  order  to  restrict  or  destroy 
competition  in  that  locality  in  the  sale  of  such  articles,  it 
shall  be  unlawful  thereafter  to  transport  within  this  state 
any  article  owned  or  controlled  by  it,  or  produced  or 
manufactured  by  it,  by  whomsoever  the  same  may  be 
owned  or  controlled.  Provided,  however,  That  the  pro- 
hibition imposed  under  this  section  shall  not  apply  to  any 
article  purchased  bona  fide  before  decree  made  in  pur- 
suance hereof  a'gainst  the  joint  stock  compan}',  corpora- 
tion, or  combination  producing,  manufacturing,  or  there- 
tofore owning  ov  controlling  the  same;  and  provided 
further,  That  even  after  decree  any  such  article  may  be 
relieved  from  the  prohibition  imposed  under  this  section, 
if  the  owner  thereof  shall  show  to  the  satisfaction  of  the 
court  having  jurisdiction  of  the  matter,  hereinafter  pro- 
vided, that  such  article  was  purchased  bona  fide,  without 
notice,  and  within  thirty  days  after  the  entry  of  such  de- 
cree. Any  transportation  company,  and  any  officer,  agent, 
or  representative  thereof^  knowingly  concerned  in  the 
transportation  of  articles  within  this  state,  contrary  to  the 
prohibitions  of  this  section,  shall  be  punished  by  a  fine 
of  not  less  than  five  thousand  dollars. 

6302p  Sec.  1C.  That  the  several  courts  of  record  of  this 
state  having  equity  jurisdiction  are  hereby  invested  with 
jurisdiction  to  prevent  and  restrain  all  violations  of  this 
act,  and  especially  the  offering,  granting,  giving,  solicit- 
ing, accepting,  or  receiving  any  such  rebate,  concession, 
or  service  by  any  person  or  persons;  and  to  prevent  or 


NEBRASKA.  207 

restrain  any  such  joint  stock  company,  corporation,  or 
combination,  who  shall  have  solicited,  accepted,  or  re- 
ceived any  such  rebate,  concession,  or  service,  or  who  shall 
have  offered,  granted,  or  given  any  special  prices,  induce- 
ments^,  or  advantages  in  order  to  restrict  or  destroy  com- 
petition in  particular  localities  from  engaging  in  com- 
merce within  this  state.  Such  proceedings  may  be  by 
way  of  petition  setting  forth  the  cause  of  action  and  .pray- 
ing that  the  acts  hereby  made  unlawful  shall  be  enjoined 
or  otherwise  prohibited.  When  the  parties  complained  of 
shall  be  duly  notified  of  such  petition,  the  court  shall 
proceed  as  soon  as  may  be  to  the  hearing  and  determina- 
tion of  the  case,  and  upon  such  petition  and  before  final 
decree  the  court  may  at  any  time  make  such  temporary 
restraining  order  or  prohibition  as  shall  be  deemed  just. 
The  court  may  retain  jurisdiction  of  the  cause  after  the 
decree,  for  the  purpose  of  such  subsequent  modification  of 
the  same  as  may  be  made  to  appear  equitable  and  just  in 
the  premises. 

6302q  Sec.  IT.  That  whenever  it  shall  appear  to  the 
court  before  which  any  civil  proceedings  under  this  act 
shall  be  pending,  that  the  ends  of  justice  require  that 
other  parties  shall  be  brought  before  the  court,  the  court 
may  cause  them  to  be  summoned,  whether  they  reside  in 
the  county  where  the  court  is  held  or  not,  and  subpoenas 
to  that  end  may  be  served  in  any  county  by  the  sheriff 
thereof. 

6302r  Sec.  18.  That  any  person  who  shall  be  injured  in 
his  business  or  property  by  any  other  person  or  persons 
by  reason  of  anything  forbidden  or  declared  to  be  un- 
lawful by  this  act,  may  sue  therefor  in  any  court  of  rec- 
ord in  this  state,  in  the  county  in  which  the  defendant 
or  defendants  reside  or  are  found,  without  respect  to  the 
amount  in  controversy,  and  shall  recover  threefold  the 
damages  by  him  sustained  and  the  costs  of  suit,  including 
a  reasonable  attorney's  fee. 

6302s  Sec.  19.  That  the  word  "  person  "  or  "  persons  " 
as  used  in  sections,  one.  three  and  five,  of  this  act^  shall 
be  deemed  to  include  all  corporations,  associations,  com- 
binations or  concerns  whatsoever. 

6302t  Sec.  20.  That  any  suit  in  equity  brought  in  any 
court  of  this  state  under  this  act,  wherein  the  state  is  com- 
plainant, the  attorney  general  may  file  with  the  clerk  of 
such  court  a  certificate  that,  in  his  opinion,  the  case  is 
of  general  public  importance,  a  copy  of  which  shall  be 


208  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

immediately  furnished  by  such  clerk  to  the  judge  of  the 
court  in  which  the  case  is  pending.  Thereupon  such 
case  shall  be  given  precedence  over  and  in  every  way 
expedited,  and  be  assigned  for  hearing  at  the  earliest 
practicable  day.  An  appeal  from  the  final  decree  of  the 
court  will  lie  only  to  the  Supreme  Court  and  must  be 
taken  within  sixty  days  from  the  entry  thereof. 

6302u  Sec.  21.  That,  in  all  prosecutions,  hearings,  and 
proceedings  under  the  provisions  of  this  act,  whether 
civil  or  criminal,  no  person  shall  be  excused  from  attend- 
ing and  testifying^  or  from  producing  books,  papers,  con- 
tracts, agreements,  and  documents  before  the  courts  of 
this  state,  or  in  obedience  to  the  subpoena  of  the  same,  on 
the  ground  or  for  the  reason  that  the  testimony  or  evi- 
dence, documentary  or  otherwise,  required  of  him  may 
tend  to  criminate  him  or  subject  him  to  a  penalty  or  for- 
feiture. Any  person  who  shall  neglect  or  refuse  to  make 
returns,  attend  and  testify  or  answer  any  lawful  require- 
ment hereinbefore  provided  for,  or  produce  books,  papers, 
contracts,  agreements,  and  documents,  if  in  his  custody, 
control,  or  power  to  do  so,  in  obedience  to  the  subpoenas 
of  the  court  or  lawful  requirements  of  the  attorney  gen- 
eral, shall  be  deemed  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof  by  a  court  of  competent  jurisdiction 
shall  be  punished  by  a  fine  of  not  less  than  five  hundred 
dollars  nor  more  than  five  thousand  dollars.  That  who- 
ever knowingly  swears  to  a  return  or  report  required  by 
this  act  that  is  false  in  any  material  particular,  or  know- 
ingly swears  to  an  answer  to  any  of  the  requirements  of 
this  act,  that  is  false  in  any  material  particular,  shall  be 
deemed  guilty  of  perjury  and  punished  as  provided  by 
the  laws  of  this  state  in  reference  to  perjury.  Whoever 
shall  knowingly  prepare,  or  cause  to  be  prepared,  a  re- 
port, return  or  answer  required  by  this  act  that  is  false, 
as  aforesaid,  shall  be  guilty  of  subornation  of  perjury 
and  punished  as  provided  by  law. 

6302v  Sec.  22.  That  there  is  hereby  appropriated  out 
of  any  money  in  the  treasury  not  otherwise  appropriated, 
to  be  expended  under  the  direction  of  the  governor  and 
attorney  general  of  this  state,  the  sum  of  Ten  Thousand 
dollars  for  the  enforcement  of  the  provisions  of  this  act 
in  the  employment  of  special  counsel  and  agents  by  tin? 
governor  or  attorney  general  to  conduct  proceedings,  suits 
and  prosecutions  under  this  act,  in  the  courts  of  this  state. 
It  is  hereby  made  the  duty  of  the  attorney  general  and 


NEBRASKAc  209 

the  county  attorney  of  the  state  under  direction  of  the 
attorney  general  to  institute  and  prosecute  such  proceed- 
ings as  may  be  necessary  to  carry  into  effect  all  of  the 
provisions  of  this  act.  Provided,  That  no  person  shall 
be  prosecuted  or  be  subjected  to  any  penalty  or  forfeiture 
for  or  on  account  of  any  transaction,  matter,  or  thing 
concerning  which  he  may  testify  or  produce  evidence, 
documentary  or  otherwise,  in  any  proceedings,  suit,  or 
prosecution  under  this  act:  Provided  further,  that  no 
person  testifying  shall  be  exempt  from  prosecution  or 
punishment  for  perjury  committed  in  so  testifying. 

COURT  DECISIONS. 

Downing  v.  Lewis,  56  Neb.,  386. 
Cleland  v.  Anderson,  66  Neb.,  252;  92  N.  W.,  306. 
Niagara  Fire  Ins.  Co.  v.  Cornell,  110  Fed.,  816. 
State  v.  Omaha  Elevator  Co.,  75  Neb.,  637;  106  N.  W., 
979. 

16491—13 14 


NEVADA. 

There  are  no  anti-trust  laws  in  Nevada. 


211 


NEW   HAMPSHIRE. 

There  is  no  specific  statutory  provision  which  prohibits 
the  making  of  contracts  and  combinations  for  the  pur- 
pose of  controlling,  limiting  or  regulating  the  produc- 
tion of  any  article  or  commodity,  or  the  market  price 
thereof,  or  to  resist  free  competition  in  its  production  or 
sale. 

But  see,  act  July  5,  1867,  which  provides  that  two  or 
more  railroad  corporations  chartered  by  the  legislature 
of  this  state  constituting  the  whole  or  part  of  different 
lines  of  route  for  public  travel  and  transportation  between 
any  two  cities  or  towns,  or  between  any  city  and  town 
either  within  or  without  this  state,  forming  rival  and 
competing  lines  of  route  between  such  points,  shall  not 
be  allowed  to  consolidate  such  roads  or  lines ;  and  neither 
of  said  lines,  or  any  road  or  roads  composing  the  same, 
shall  be  run  or  operated  by  any  such  rival  and  competing 
line,  or  any  road  or  roads,  or  portion  thereof,  under  any 
business  contract,  lease,  or  other  arrangement;  but  each 
and  every  railroad  corporation  so  situated  shall  be  run, 
managed,  and  operated  separately  by  its  own  officers  and 
agents,  and  be  dependent  for  its  connection  with  other 
roads,  and  the  facilities  and  accommodations  it  shall 
afford  the  public  for  travel  and  transportation  under  fair 
and  open  competition,  unless  such  lease,  contract,  or  ar- 
rangement be  first  authorized  by  the  legislature  and 
approved  by  the  government  and  council. 

COURT  DECISIONS. 

Currier  v.  Concord  E.  Corp.,  48  K  H.,  321. 
Morrill  v.  Boston  &  M.  R.  Co.,  55  N.  H.,  531. 

213 


NEW  JERSEY. 

STATUTES. 

CHAPTER    13,   LAWS  OF    1913. 

AN  ACT  To  define  trusts,  and  to  provide  for  criminal  penalties  and 
punishment  of  corporations,  firms  and  persons,  and  to  promote 
free  competition  in  commerce  and  all  classes  of  business,  both 
intrastate  business  and  interstate  business,  engaged  in  and  car- 
ried on  by  or  through  any  corporation,  firm  or  person. 

1.  A  trust  is  a  combination  or  agreement  between  cor- 
porations, firms  or  persons,  any  two  or  more  of  them,  for 
the  following  purposes,  and  such  trust  is  hereby  declared 
to  be  illegal  and  indictable: 

(1)  To  create  or  carry  out  restrictions  in  trade  or  to 
acquire  a  monopoly,  either  in  intrastate  or  interstate  busi- 
ness or  commerce. 

(2)  To  limit  or  reduce  the  production,  or  increase  the 
price  of  merchandise  or  of  any  commodity. 

(3)  To  prevent  competition  in  manufacturing,  making, 
transporting,  selling  and  purchasing  of  merchandise,  pro- 
duce or  any  commodity. 

(4)  To  fix  at  any  standard  or  figure,  whereby  its  price 
to  the  public  or  consumer  shall  in  any  manner  be  con- 
trolled, any  article  or  commodity  or  merchandise,  produce 
or  commerce  intended  for  sale,  use  or  consumption  in  this 
State  or  elsewhere. 

(5)  To  make  any  agreement  by  which  they  directly  or 
indirectly  preclude  a  free  and  unrestricted  competition 
among  themselves,  or  any  purchaser  or  consumers,  in  the 
sale  or  transportation  of  any  article  or  commodity,  either 
by  pooling,  withholding  from  the  market  or  selling  at  a 
fixed  price,  or  in  any  other  manner  by  which  the  price 
might  be  affected. 

(6)  To  make  any  secret  oral  agreement  or  arrive  at  an 
understanding  without  express  agreement  by  which  they 
directly  or  indirectly  preclude  a  free  and  unrestricted 

215 


216  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

competition  among  themselves,  or  any  purchaser  or  con- 
sumer, in  the  sale  or  transportation  of  any  article,  either 
by  pooling,  withholding  from  the  market,  or  selling  at  a 
fixed  price,  or  in  any  other  manner  by  which  the  price 
might  be  affected. 

2.  Any  person  or  corporation  guilty  of  violating  any  of 
the  provisions  of  this  act  shall  be  adjudged  guilty  of  a 
misdemeanor,  and  punished  accordingly  on  conviction. 

3.  Whenever  an  incorporated  company  shall  be  guilty 
of  the  violation  of  any  of  the  provisions  of  this  act,  the 
offence  shall  be  deemed  to  be  also  that  of  the  individual 
directors,  of  such  corporation,  ordering  or  doing  any  of 
such  prohibited  acts  and  on  conviction  thereof  they  shall 
be  punished  accordingly. 

4.  In  addition  to  the  punishment  which  may  be  imposed 
for  the  misdemeanor  the  charter  of  the  offending  corpo- 
ration may  be  revoked  in  appropriate  proceedings  by  the 
Attorney-General  of  this  State. 

5.  Nothing  in  this  act  contained  shall  operate  to  de- 
prive any  corporation  of  any  right  or  power  given  or 
granted  by  section  forty-nine  of  the  act  entitled  "An  act 
concerning    corporations   (Revision    of    1896,"  and    the 
words  "  article  "  and  "  commodities  "  in  this  act  are  to  be 
construed  as  synonymous  with  natural  products,  manu- 
factured products,  and  goods,  wares  and  merchandise. 

6.  If  any  part  or  parts  of  this  act  shall  be  held  to  be  in- 
valid or  unconstitutional  the  validity  of  the  other  parts 
hereof  shall  not  thereby  be  affected  or  impaired. 

Approved  February  19,  1913. 

[Chapter  14,  Laws  of  1913.] 

A  FURTHER  SUPPLEMENT  To  an  act  entitled  "An  act  concern- 
ing corporations  (Revision  of  1896),"  approved  April  twenty- 
first,  one  thousand  eight  hundred  and  ninety-six,  for  the  purpose 
of  amending  section  forty-nine  thereof. 

1.  Section  forty-nine  of  the  act  entitled  "An  act  con- 
cerning corporations  (Revision  of  1896),"  be  and  the 
same  is  hereby  amended  so  as  to  read  as  follows : 

49.  (1).  Any  corporation  formed  under  this  act  may 
purchase  property,  real  and  personal,  and  the  stock  of  any 
corporation,  necessary  for  its  business,  and  issue  stock  to 
the  amount  of  the  value  thereof  in  payment  therefor,  sub- 
ject to  the  provisions  hereinafter  set  forth,  and  the  stock 
so  issued  shall  be  full  paid  stock,  and  not  liable  to  any 


NEW    JERSEY.  217 

further  call;  and  said  corporation  may  also  issue  stock 
for  the  amount  it  actually  pays  for  labor  performed. 

Provided,  that  when  property  is  purchased  the  purchas- 
ing corporation  must  receive  in  property  or  stock  what 
the  same  is  reasonably  worth  in  money  at  a  fair,  bona  fide 
valuation ;  and  provided  further,  that  no  fictitious  stock 
shall  be  issued;  that  no  stock  shall  be  issued  for  profits 
not  yet  earned,  but  only  anticipated;  and  provided  fur- 
ther, that  when  stock  is  issued  on  the  basis  of  the  stock 
of  any  other  corporation  it  may  purchase,  no  stock  shall 
be  issued  thereon  for  an  amount  greater  than  the  sum  it 
actually  pays  for  such  stock  in  cash  or  its  equivalent ;  and 
provided  further,  that  the  property  purchased  or  the 
property  owned  by  the  corporation  whose  stock  is  pur- 
chased shall  be  cognate  in  character  and  use  to  the  prop- 
erty used  or  contemplated  to  be  used  by  the  purchasing 
corporation  in  the  direct  conduct  of  its  own  proper  busi- 
ness ;  and  in  all  cases  when  stock  is  to  be  issued  for  prop- 
erty purchased,  or  for  the  stock  of  other  corporations 
purchased,  a  statement  in  writing,  signed  by  the  directors 
of  the  purchasing  company  or  by  a  majority  of  them, 
shall  be  filed  in  the  office  of  the  Secretary  of  State,  show- 
ing what  property  has  been  purchased,  and  what  stock 
of  any  other  corporation  has  been  purchased,  and  the 
amount  actually  paid  therefor. 

(2)  That  if  any  certificate  made  in  pursuance  of  this 
act  shall  be  false  in  any  material  representation,  all  the 
officers  who  sign  the  same,  knowing  it  to  be  false,  shall  be 
guilty  of  misdemeanor,  and  the  directors,  officers  and 
agents  of  the  corporation,  who  wilfully  participate  in 
making  it,  shall  be  guilty  of  misdemeanor.  And  pro- 
vided further,  that  any  corporation  which  shall  purchase 
the  stock  of  any  other  corporation,  or  any  property,  for 
the  purpose  of  restraining  trade  or  commerce,  or  acquir- 
ing a  monopoly,  and  the  directors  thereof  participating 
therein,  shall  be  guilty  of  a  misdemeanor. 

2.  This  act  shall  take  effect  immediately. 

Approved  February  19,  1913. 

[Chapter  15,  Laws  of  1913.] 

A  FURTHER  SUPPLEMENT  To  the  act  entitled  "An  act  for  the 
punishment  of  crimes   (Revision  of  1898)." 

1.  It  shall  be  unlawful  for  any  person,  firm,  corporation 
or  association,  engaged  in  the  production,  manufacture. 


218  LAWS  ON   TRUSTS  AND   MONOPOLIES. 

distribution  or  sale  of  any  commodity  of  general  use,  or 
rendering  any  service  to  the  public,  to  discriminate  be- 
tween different  persons,  firms,  associations  or  corpora- 
tions, or  different  sections,  communities  or  cities  of  the 
State,  by  selling  such  commodity  or  rendering  such  serv- 
ice at  a  lower  rate  in  one  section,  community  or  city  than 
another,  or  at  a  different  rate  or  price  at  a  point  awTay 
from  that  of  production  or  manufacture  as  at  the  place  of 
production  or  manufacture,  after  making  due  allowance 
for  the  difference,  if  any.  in  the  grade,  quality  or  quantity, 
and  in  the  actual  cost  of  transportation  from  the  point  of 
production  or  manufacture,  if  the  effect  or  intent  thereof 
is  to  establish  or  maintain  a  virtual  monopoly,  hindering 
competition,  or  restriction  of  trade. 

2.  Any  person  or  corporation  violating  this  act  shall  be 
guilty  of  a  misdemeanor  and  on  conviction  thereof  shall 
be  punished  accordingly. 

3.  This  act  shall  take  effect  immediately. 
Approved  February  19,  1913. 

[Chapter  16.  Laws  of  191H.I 

AN  ACT  To  anieiid  an  act  entitled  "A  further  supplement  to  the 
act  entitled  'An  act  for  the  punishment  of  crimes.'  approved 
June  fourteenth,  one  thousand  eight  hundred  and  ninety-eight 
(Revision  of  1898),"  which  supplement  was  approved  June 
second,  one  thousand  nine  hundred  and  five. 

1.  Section  one  of  the  act  entitled  "A  further  supple- 
ment to  the  act  entitled  'An  act  for  the  punishment  of 
crimes,'  approved  June  fourteenth,  one  thousand  eight 
hundred  and  ninety-eight  (Revision  of  1898),"  which  sup- 
plement was  approved  June  second,  one  thousand  nine 
hundred  and  five,  be  and  the  same  is  hereby  amended  so 
as  to  read  as  follows : 

1.  Any  person  or  persons,  who  shall  organize,  or  incor- 
porate, or  procure  to  be  organized,  or  incorporated,  any 
corporation  or  body  politic,  under  the  laws  of  this  State, 
with  intent  thereby  to  further,  promote  or  conduct  any 
object  which  is  fraudulent  or  unlawful  under  the  laws  of 
this  State,  or  which  is  intended  to  be  used  in  restraint  of 
trade  or  in  acquiring  a  monopoly,  when  such  corporation 
or  body  politic  engages  in  interstate  or  intrastate  com- 
merce, shall  be  guilty  of  a  misdemeanor. 

2.  Section  two  of  the  said  supplement  shall  be  and  the 
same  is  hereby  amended  so  as  to  read  as  follows : 


NEW    JERSEY.  219 

2.  Any   person,   or   persons,   being  officers,   directors, 
managers  or  employees  of  any  corporation  or  body  politic, 
incorporated  under  the  laws  of  this  State,  who  shall 
wilfully  use,  operate  or  control  said  corporation  or  body 
politic,  or  suffer  the  same  to  be  used  for  the  furtherance 
or  promotion  of  any  object  fraudulent  or  unlawful  under 
the  laws  of  this  State,  or  who  shall  use  the  same  directly 
or  indirectly  in  restraint  of  trade  or  in  acquiring  a  mo- 
nopoly, when  such  corporation  or  body  politic  engages  in 
interstate  or  intrastate  commerce,  shall  be  guilty  of  a 
misdemeanor. 

3.  If  any  part  or  parts  of  this  act  shall  be  declared  to 
be  invalid  or  unconstitutional,  the  other  parts  hereof  shall 
not  thereby  be  affected  or  impaired. 

4.  This  act  shall  take  effect  immediately. 
Approved  February  19,  1913. 

[Chapter  17,  Laws  of  1913.] 

AN  ACT  To  amend  section  one  hundred  and  nine  of  an  act  entitled 
"An  act  concerning  corporations  (Revision  of  1896),"  approved 
April  twenty-first,  one  thousand  eight  hundred  and  ninety-six. 

1.  Section  one  hundred  and  nine  of  the  act  entitled  "An 
act  concerning  corporations  (Revision  of  1896),"  be  and 
the  same  is  hereby  amended  so  as  to  read  as  follows : 

109.  When  two  or  more  corporations  are  merged  or 
consolidated  the  consolidated  corporation  shall  have 
power  and  authority  to  issue  bonds  or  other  obligations, 
negotiable  or  otherwise,  and  with  or  without  coupons  or 
interest  certificates  thereto  attached,  to  an  amount  suf- 
ficient with  its  capital  stock  to  provide  for  all  the  pay- 
ments it  will  be  required  to  make  or  obligations  it  will  be 
required  to  assume,  in  order  to  effect  such  merger  or 
consolidation:  to  secure  the  payment  of  which  bonds  or 
obligations  it  shall  be  lawful  to  mortgage  its  corporate 
franchises,  rights,  privileges  and  property,  real,  personal 
and  mixed:  provided,  such  bonds  shall  not  bear  a  greater 
rate  of  interest  than  six  per  centum  per  annum ;  the  con- 
solidated corporation  may  issue  capital  stock,  either  com- 
mon or  preferred,  or  both,  to  such  an  amount  as  may  be 
necessary,  to  the  stockholders  of  such  merging  or  consoli- 
dating corporation  in  exchange  or  payment  for  their 
original  shares,  in  the  manner  and  on  the  terms  specified 
in  the  agreement  of  merger,  or  consolidation,  which  may 
fix  the  amount  and  provide  for  the  issue  of  preferred 


220  LAWS   ON    TRUSTS   AND    MONOPOLIES. 

stock  based  on  the  property  or  stock  of  the  merging  or 
consolidating  corporation  conveyed  to  the  consolidated 
corporations,  as  well  as  upon  money  capital  paid  in. 

2.  This  act  shall  take  effect  immediately. 

Approved  February  19,  1913. 

[Chapter  IS,  Laws  1913. J 

AN  ACT  To  amen;!  an  act  entitled  "An  act  concerning  corporations 
(Revision  of  ]8fl6),"  approved  April  twenty-first,  eighteen  hun- 
dred and  ninety-six. 

1.  Section  fifty-one  of  the  act  referred  to  in  the  title  of 
t  his  act  is  hereby  amended  to  read  as  follows : 

51.  No  corporation  heretofore  organized  or  hereafter  to 
be  organized  under  the  provisions  of  this  act  to  which  this 
is  an  amendment,  or  the  amendments  thereof  or  supple- 
ments thereto,  except  as  otherwise  provided  therein  or 
thereby,  shall  hereafter  purchase,  hold,  sell,  assign,  trans- 
fer, mortgage,  pledge,  or  otherwise  dispose  of  the  shares 
of  the  corporate  stock  of  any  other  corporation  or  corpo- 
rations of  this  or  any  other  State,  or  of  any  bonds,  se- 
curities or  other  evidences  of  indebtedness  created  by  any 
other  corporation  or  corporations  of  this  or  any  other 
State,  nor  as  owner  of  such  stock  exercise  any  of  the 
rights,  powers  and  privileges  of  ownership,  including  the 
right  to  vote  thereon.  Provided,  that  nothing  herein  con- 
tained shall  operate  to  prevent  any  corporation  or  cor- 
porations from  acquiring  the  bonds,  securities  or  other 
evidences  of  indebtedness  created  by  any  non-competing 
corporation  in  payment  of  any  debt  or  debts  due  from 
any  such  non-competing  corporation ;  nor  to  prevent  any 
corporation  or  corporations  created  under  the  laws  of  this 
State  from  purchasing  as  a  temporary  investment  out  of 
its  surplus  earnings,  reserved  under  the  provisions  of  this 
act,  as  a  working  capital,  bonds,  securities  or  evidences 
of  indebtedness  created  by  any  non-competing  corpora- 
tion or  corporations  of  this  or  any  other  State,  or  from 
investing  in  like  securities  any  funds  held  by  it  for  the 
benefit  of  its  employees  or  any  funds  held  for  insurance, 
any  such  non-competing  corporation ;  nor  to  prevent  any 
corporation  or  corporations  created  under  the  laws  of  this 
State  from  purchasing  the  bonds,  securities  or  other  evi- 
dences of  indebtedness  created  by  any  corporation  the 
stock  of  which  may  lawfully  be  purchased  under  the  au- 
thority given  by  section  forty-nine  of  the  act  entitled 


NEW    JERSEY.  221 

"An  act  concerning  corporations  (Revision  of  1896)"; 
provided,  also,  that  nothing  herein  contained  shall  be  held 
to  affect  or  impair  any  right  heretofore  acquired  in  pur- 
suance of  the  section  hereby  amended,  by  any  corporation 
created  under  the  laws  of  this  State. 

2.  All  acts  and  parts  of  acts  inconsistent  herewith  are 
hereby  repealed,  and  this  act  shall  take  effect  immedi- 
ately. 

Approved  February  19,  1913. 

[Chapter  19,  Laws  1913.] 

A  FURTHER  SUPPLEMENT  To  an  act  entitled  "An  act  concern- 
ing corporations  (Revision  of  1896)."  approved  April  twenty- 
first,  one  thousand  eight  hundred  and  ninety-six. 

1.  A  merger  of  corporations  made  under  the  provisions 
of  the  act  to  which  this  act  is  a  supplement,  shall  not  in 
any  manner  impair  the  rights  of  any  creditor  of  either 
of  the  merged  corporations. 

2.  Before  any  merger  of  corporations  can  be  made,  the 
approval   thereof  in   writing  by   the   Board   of  Public 
Utility  Commissioners  of  this  State  shall  be  obtained  by 
said  corporations  and  filed  in  the  office  of  the  Secretary 
of  State,  with  the  names  of  the  directors  of  each  of  said 
corporations  which  assent  to  the  merger. 

3.  Ever}7  corporation,  and  the  directors  thereof,  pro- 
curing or  assenting  to  such  merger  without  complying 
with  the  provisions  hereinbefore  contained,  shall  be  guilty 
of  a  misdemeanor  and  punishable  accordingly. 

4.  This  act  shall  take  effect  immediately. 
Approved  February  19,  1913. 

COURT  DECISIONS. 

John  P.  Stockton,  Attorney-General  of  New  Jersey,  at 
the  Relation  of  John  R.  Miller  et  al.  v.  The  American 
Tobacco  Co.  et  al.,  55  N.  J.  Eq.,  352. 

Trenton  Potteries  Co.  v.  Richard  C.  Oliphant  et  al. 
56  N.  J.  Eq.,  680 ;  43  At.  Rep.,  723. 


NEW  MEXICO. 

STATUTES. 

Every  contract  or  combination  between  individuals, 
associations  or  corporations,  having  for  its  object  or 
which  shall  operate  to  restrict  trade  or  commerce  or  con- 
trol the  quantity,  price  or  exchange  of  any  article  of 
manufacture  or  product  of  the  soil  or  mine,  is  hereby 
declared  to  be  illegal. 

Every  person,  whether  as  individual  or  agent  or  officer 
or  stockholders  of  any  corporation  or  association,  who 
shall  make  any  such  contract  or  engage  in  any  such  com- 
bination shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  punished  by  a  fine  not  ex- 
ceeding one  thousand  dollars,  nor  less  than  one  hundred 
dollars,  and  by  imprisonment  at  hard  labor  not  exceed- 
ing one  year,  or  until  such  fine  has  been  paid.  (C.  L. 
1897,  Sec.  1292.) 

Every  person  who  shall  monopolize  or  attempt  to 
monopolize,  or  combine  or  conspire  with  any  other  per- 
son or  persons  to  monopolize  any  part  of  the  trade  or 
commerce  of  this  territory,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  on  conviction  thereof  shall  be  pun- 
ished by  a  fine  not  exceeding  one  thousand  dollars,  or  by 
imprisonment  not  exceeding  one  year,  or  by  both  said 
punishments  in  the  discretion  of  the  court.  (C.  L.  1897. 
Sec.  1293.) 

All  contracts  and  agreements  in  violation  of  sections 
1292  and  1293  shall  be  void,  and  the  person  or  persons, 
corporation  or  corporations,  association  or  associations 
who  shall  violate  the  provisions  of  either  of  said  sec- 
tions shall  be  civilly  liable  to  the  party  injured  for  any 
and  all  damage  occasioned  by  such  violation,  and  any 
purchaser  of  any  commodity  from  any  individual,  cor- 
poration or  association  transacting  business  in  violation 
of  this  act  shall  not  be  liable  for  the  payment  for  such 
commodity.  (C.  L.  1897.  Sec.  1294,  as  amended  by  Laws 
of  1907,  c.  18,  p.  19.) 

228 


NEW   YORK. 

STATUTES. 

No  domestic  stock  corporation  and  no  foreign  corpora- 
tion doing  business  in  this  state  shall  combine  with  any 
other  corporation  or  person  for  the  creation  of  a 
monopoly  or  the  unlawful  restraint  of  trade,  or  for  the 
prevention  of  competition  in  any  necessary  of  life.  (S.  C. 
L.,  Sec.  14.) 

Every  contract,  agreement,  arrangement  or  combina- 
tion whereby  a  monopoly  in  the  manufacture,  production 
or  sale  in  this  state  of  any  article  or  commodity  of  com- 
mon use  is  or  may  be  created,  established  or  maintained, 
or  whereby  competition  in  this  state  in  the  supply  or 
price  of  any  such  article  or  commodity  is  or  may  be  re- 
strained or  prevented,  or  whereby  for  the  purpose  of 
creating,  establishing  or  maintaining  a  monopoly  within 
this  state  of  the  manufacture,  production  or  sale  of  any 
such  article  or  commodity,  the  free  pursuit  in  this  state 
of  any  lawful  business,  trade  or  occupation  is  or  may  be 
restricted  or  prevented,  as  hereby  declared  to  be  against 
public  policy,  illegal  and  void.  (Cons.  Laws,  c.  20,  Sec. 
240.) 

Every  person  or  corporation,  or  any  officer  or  agent 
thereof,  who  shall  make  or  attempt  to  make  or  enter 
into  any  such  contract,  agreement,  arrangement  or  com- 
bination, or  who  within  this  state  shall  do  any  act  pur- 
suant thereto,  or  in,  toward  or  for  the  consummation 
thereof,  wherever  the  same  may  have  been  made,  is  guilty 
of  a  misdemeanor,  and  on  conviction  thereof  shall,  if  a 
natural  person,  be  punished  by  a  fine  not  exceeding  five 
thousand  dollars,  or  by  imprisonment  for  not  longer  than 
one.  year,  or  by  both  such  fine  and  imprisonment ;  and  if 
a  corporation,  by  a  fine  of  not  exceeding  twenty  thousand 
dollars.  An  indictment  based  on  a  violation  of  any  of 
the  provisions  of  this  section  must  be  found  within  two 
years  after  its  commission.  (Cons.  Laws,  c.  20,  Sec.  341, 
as  amended  by  L.  1910,  c.  633.) 

16491—13 15  225 


226  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

The  attorney-general  may  bring  an  action  in  the  name 
and  in  behalf  of  the  people  of  the  state  against  any  per- 
son, trustee,  director,  manager  or  other  officer  or  agent 
of  a  corporation,  or  against  a  corporation,  foreign  or 
domestic,  to  restrain  and  prevent  the  doing  in  this  state 
of  any  act  herein  declared  to  be  illegal,  or  an}7  act  in> 
toward  or  for  the  making  or  consummation  of  any  con- 
tract, agreement,  arrangement  or  combination  herein 
prohibited,  wherever  the  same  may  have  been  made. 
Id.,  Sec.  342.) 

Whenever  the  attorney-general  has  determined  to  com- 
mence an  action  or  proceeding  under  this  article,  he  may 
present  to  any  justice  of  the  supreme  court,  before  be- 
ginning such  action  or  proceeding,  an  application  in 
writing,  for  an  order  directing  the  persons  mentioned  in 
the  application  to  appear  before  a  justice  of  the  supreme 
court,  or  a  referee  designated  in  such  order,  and  answer 
such  questions  as  may  be  put  to  them  or  to  any  of  them, 
and  produce  such  papers,  documents  and  books  concern- 
ing any  alleged  illegal  contract,  arrangement,  agreement 
or  combination  in  violation  of  this  article;  and  it  shall 
be  the  duty  of  the  justice  of  the  supreme  court,  to  whom 
such  application  for  the  order  is  made,  to  grant  such 
application.  The  application  for  such  order  made  by 
the  attorney-general  may  simply  show,  upon  his  in- 
formation and  belief,  that  the  testimony  of  such  person 
or  persons  is  material  and  necessary.  The  provisions  of 
the  code  of  civil  procedure,  chapter  nine,  title  three, 
article  one,  relating  to  the  application  for  an  order  for 
the  examination  of  witnesses  before  the  commencement  of 
an  action  and  the  method  of  proceeding  on  such  examina- 
tion shall  not  apply  except  as  herein  prescribed.  The 
order  shall  be  granted  by  the  justice  of  the  supreme  court 
to  whom  the  application  has  been  made,  with  such  pre- 
liminary injunction  or  stay  as  may  appear  to  such  justice 
to  be  proper  and  expedient,  and  shall  specify  the  time 
when  and  place  where  the  witnesses  are  required  to  ap- 
pear, and  such  examination  shall  be  held  either  in  the 
city  of  Albany,  or  in  the  judicial  district  in  which \ the 
witness  resides,  or  in  which  the  principal  office,  within 
this  state,  of  the-  corporation  affected  is  located.  The 
justice  or  referee  may  adjourn  such  examination  from 
time  to  time,  and  witnesses  must  attend  accordingly. 
The  testimony  of  each  witness  must  be  subscribed  by  him. 
and  all  must  be  filed  in  the  office  of  the  clerk  of  the  county 


NEW   YORK.  227 

in  which  such  order  for  examination  is  filed.  (Id.,  Sec. 
343.) 

The  order  for  such  examination  must  be  signed  by  the 
justice  making  it,  and  the  service  of  a  copy  thereof,  with 
an  indorsement  by  the  attorney-general,  signed  by  him, 
to  the  effect  that  the  person  named  therein  is  required  to 
appear  and  be  examined  at  the  time  and  place,  and  before 
the  justice  or  referee  specified  in  such  indorsement,  shall 
be  sufficient  notice  for  the  attendance  of  witnesses.  Such 
indorsement  may  contain  a  clause  requiring  such  person 
to  produce  on  such  examination  all  books,  papers  and 
documents  in  his  possession,  or  under  his  control,  relating 
to  the  subject  of  such  examination.  The  order  shall  be 
served  upon  the  person  named  in  the  indorsement  afore- 
said, by  showing  him  the  original  order,  and  delivering 
to  and  leaving  with  him,  at  the  same  time,  a  copy  thereof 
indorsed  as  above  provided,  and  by  paying  or  tendering 
to  him  the  fee  allowed  by  law  to  witnesses  subpoenaed  to 
attend  trials  of  civil  actions  in  a  court  of  record  in  this 
state.  (Id.,  Sec.  344.) 

No  person  shall  be  excused  from  answering  any  ques- 
tions that  may  be  put  to  him,  or  from  producing  any 
books,  papers  or  documents,  on  the  ground  that  the  testi- 
mony or  evidence,  documentary  or  otherwise,  required  of 
him  may  tend  to  incriminate  him,  but  no  person  shall  be 
prosecuted  in  any  criminal  action  or  proceedings,  or  sub- 
jected to  any  penalty  or  forfeiture,  for  or  on  account  of 
any  transaction,  matter  or  thing  concerning  which  he 
may  testify,  or  produce  evidence,  documentary  or  other- 
wise, before  said  justice  or  referee  appointed  in  the  order 
for  his  examination,  or  in  obedience  to  the  subpoena  of 
the  court,  or  referee  acting  under  such  order,  or  either  of 
them  or  in  any  such  case  or  proceeding.  (Id.,  Sec.  345.) 

A  referee  appointed  as  provided  in  this  article  pos- 
sesses all  the  powers  and  is  subject  to  all  the  duties  of  a 
referee  appointed  under  section  ten  hundred  and  eighteen 
of  the  code  of  civil  procedure,  so  far  as  practicable,  and 
may  punish  for  contempt  a  witness  duly  served  as  pre- 
scribed in  this  article  for  nonattendance  or  refusal  to  be 
sworn  or  to  testify,  or  to  produce  books,  papers  and  doc- 
uments according  to  the  direction  of  the  indorsement 
aforesaid,  in  the  same  manner,  and  to  the  same  extent  as 
a  referee  appointed  to  hear,  try  and  determine  an  issue  of 
fact  or  of  law.  (Id.,  Sec.  346.) 


228  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

If  two  or  more  persons  conspire.  *  *  *  6.  To 
commit  any  act  injurious  to  trade  or  com- 

merce is  guilty  of  a  misdemeanor.  (Penal 

Law,  Art.  LIV,  Sec.  580.) 

No  person  shall  be  excused  from  attending  and  testify- 
ing, or  producing  any  books,  papers  or  other  documents 
before  any  court,  magistrate,  or  referee,  upon  any  in- 
vestigation, proceeding  or  trial,  for  a  violation  of  any  of 
the  provisions  of  this  article,  upon  the  ground  or  for  the 
reason  that  the  testimony  or  evidence,  documentary  or 
otherwise,  required  of  him  may  tend  to  convict  him  of  a 
crime  or  subject  him  to  a  penalty  or  *for  forfeiture;  but 
no  person  shall  be  prosecuted  or  subjected  to  any  penalty 
or  forfeiture  for  or  on  account  of  any  transaction,  mat- 
ter or  thing  concerning  which  he  may  so  testify  or  pro- 
duce evidence,  documentary  or  otherwise,  and  no  testi- 
mony so  given  or  produced  shall  be  received  against  him 
upon  any  criminal  investigation,  proceeding  or  trial. 
(Penal  Law,  Sec.  584,  added  by  L.  1910,  c.  395.) 

ACTS    1913. 

Commissioner  of  agriculture  may  revoke  milk  dealer's 

license : 

*  *  *  *  * 

3.  Where  there  have  been  combinations  to  fix  prices. 
***** 

(Sec.  57,  Chap.  408,  Acts  1913.) 

Commissioner  of   agriculture   may   revoke   license   of 

commission  merchants: 

***** 

6.  Where  there  has  been  a  combination  or  combinations 

to  fix  prices : 

***** 

(Sec.  286,  Chap.  458,  Acts  1913.) 

COURT  DECISIONS. 

The  People  of  the  State  of  New  York  v.  Carson  J. 
Sheldon  et  al.,  139  N.  Y.,  251. 

Harvey  F.  Drake  et  al.  v.  Steverin  Siebold,  81  Hun., 
178. 

The  National  Harrow  Co.  v.  E.  Bement  &  Sons,  21 
N".  Y.  App.  Div.,  290. 

In  the  Matter  of  the  Application  of  the  Attorney-Gen- 
eral for  an  Order  for  the  Examination  of  Witnesses 


NEW   YORK.  229 

under  the  Provisions  of  Chapter  383  of  the  Laws  of  1897. 
The  Attorney -General,  appellant ;  Eobt  M.  Olyphant.  re- 
spondent. 21  Misc.  Eep.,  101;  22  App.  Div.,  285;  155 
X.  Y.,  441. 

John  G.  Walsh  and  G.  Wells  Walsh  v.  John  Dwight  et 
al,  40  N.  Y.  App.  Div.,  513. 

Diamond  Match  Co.  v.  Koeber,  106  N.  Y.,  473. 

John  L.  Leslie  v.  Jacob  Lorillard  et  al.,  110  N.  Y.,  519. 

John  Good  v.  William  S.  Daland  et  al.,  121  N.  Y.,  1. 

The  People  of  the  State  of  New  York  v.  The  North 
River  Sugar  Refining  Co.,  121  N.  Y.,  582. 

Strait  et  al.  v.  National  Harrow  Co.  et  al.,  18  N.  Y. 
Supp.,  224. 

De  Witt  Wire  Cloth  Co.  v.  New  Jersey  Wire  Cloth  Co. 
9  Ry.  and  Corp.  L.  J.,  314. 

Sylvanus  Judd  v.  Dennis  Harrington,  139  N.  Y.,  105. 

Ernest  St.  George  Lough  et  al.  v.  A.  Emilius  Outer- 
bridge  et  al..  143  N.  Y.,  271. 

The  People  of  the  State  of  New  York  v.  The  Milk  Ex-     , 
change,  145  N.  Y.,  267. 

Brooklyn  Distilling  Co.  v.  Standard  Distilling  Co.,  120 
App.  D.,  237. 

Rourke  v.  Elk  Drug  Co.,  75  App.  D.,  145. 

Continental    Securities    Co.    v.    Interborough    Rapid 
Transit  Co.,  165  Fed.,  945. 

Burrows  v.  Interborough  Rapid  Transit  Co.,  156  Fed., 
389. 

Attorney  General  v.  Consolidated  Gas.  Co.,  124  App.  D., 
401. 

Alexandria  Bay  Steamboat  Co.  v.    New  York  Central, 
etc.,  R.  R.  Co.,  18  App.  D.,  527. 

Rafferty  v.  Buffalo  City  Gas  Co.,  37  App.  D.,  618. 

Watson  v.  Harlem  &  N.  Y.  Navigation  Co.,  52  How. 
Pr.,  348. 

Strauss  v.  American  Publishers'  Ass'n.,  177  N.  Y.,  473. 
See  opinion  of  U.  S.  Sup.  Ct.  rendered  Dec.  1, 1913. 

Park   v.    National   Wholesale   Druggists'   Ass'n..    175 
N.  Y. ;  62  L.  R.  A.,  632. 

People  v.  Duke,  19  Misc.,  292;  44  N.  Y.  Suppl.,  336. 

Re  Davies,  168  N.  Y.,  89 ;  56  L.  R.  A.,  855. 


NORTH   CAROLINA. 

STATUTES. 

It  shall  be  unlawful  for  any  person  or  corporation  to 
directly  or  indirectly  be  guilty  of  any  of  the  acts  and 
things  specified  in  any  of  the  subsections  of  this  section, 
(a)  For  any  person,  firm,  corporation  or  association  to 
make  a  sale  or  sales  of  any  goods,  wares,  merchandise, 
articles  or  things  of  value  whatsoever  in  North  Carolina, 
whether  directly  or  indirectly,  or  through  any  agent  or 
employee,  upon  the  condition  that  the  purchaser  thereof 
shall  not  deal  in  the  goods,  wares,  merchandise,  articles 
or  things  of  value  of  a  competitor  or  rival  in  the  business 
of  the  person,  firm,  corporation  or  association  making 
said  sales,  (b)  For  any  person,  firm,  corporation  or  as- 
sociation to  directly  or  indirectly  wilfully  destroy  or  in- 
jure, or  undertake  to  destroy  or  injure,  the  business  of 
any  opponent  or  business  rival  in  the  state  of  North  Car- 
olina, by  circulating  false  reports  tending  to  damage  the 
credit  or  character  of  said  opponent  or  rival,  or  tending 
to  interfere  with  the  trade  of  said  opponent  or  rival, 
with  the  purpose  or  intention  of  attempting  to  fix  the 
price  of  anything  of  value  when  the  competition  is  re- 
moved, (c)  For  any  person,  firm,  corporation,  or  asso- 
ciation to  wilfully  injure  or  destroy  or  undertake  to  in- 
jure or  destroy  the  business  of  any  rival  or  opponent,  by 
loAvering  the  price  of  any  article  or  thing  of  value  sold  so 
low,  or  by  raising  the  price  of  any  article  or  thing  of 
value  bought  so  high,  as  to  leave  an  unreasonable  or  in- 
adequate profit,  (d)  For  any  person,  firm,  corporation, 
or  association  to  injure  or  destroy  or  undertake  to  injure 
or  destroy  the  business  of  any  rival  or  opponent  by  lower- 
ing the  price  of  any  article  or  thing  of  value  bought  so 
low,  or  by  raising  the  price  of  any  article  or  thing  of 
value  bought  so  high,  as  *to  leave  an  unreasonable  or 
inadequate  profit,  and  with  the  purpose  of  increasing  the 
profit  on  the  business  when  such  rival  or  opponent  is 

231 


232  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

driven  out  of  business  or  its  business  is  injured,  (e) 
For  any  person,  firm,  corporation,  or  association  dealing 
in  any  thing  of  value  within  the  State  of  North  Caro- 
lina to  give  away,  or  sell,  at  a  place  where  there  is  com- 
petition, such  thing  of  value  at  a  price  lower  than  is 
charged  by  such  person,  firm,  corporation,  or  association 
for  the  same  thing  at  another  place,  where  there  is  not 
sufficient  reason  for  charging  less  at  the  one  place  than 
at  the  other,  with  the  view  of  injuring  the  business  of 
another,  (f)  For  any  person,  firm,  corporation,  or  asso- 
ciation engaged  in  buying  or  selling  any  thing  of  value 
in  North  Carolina  to  make  or  have  any  agreement  or  un- 
derstanding, express  or  implied,  with  any  other  person, 
firm,  corporation  or  association  not  to  buy  or  sell  things 
of  value  within  certain  territorial  limits  within  the  state, 
with  the  intention  of  preventing  competition  in  selling 
or  to  fix  the  price  or  prevent  competition  in  buying  of 
said  things  of  value  within  these  limits;  provided,  noth- 
ing herein  shall  be  construed  to  prevent  an  agent  from 
representing  more  than  one  principal.  But  nothing  in 
this  proviso  shall  be  construed  to  authorize  two  or  more 
principals  to  employ  a  common  agent  for  the  purpose  of 
suppressing  competition  or  lowering  prices,  (g)  For 
any  person,  firm,  corporation,  or  association,  with  intent 
to  injure  another,  to  conspire  or  agree  with  any  other  per- 
son, firm,  corporation,  or  association  to  put  down  or  keep 
down  the  price  of  any  article  produced  in  this  state  by 
the  labor  of  others,  which  said  article  the  said  person, 
firm,  corporation,  or  association  intends  to  buy  or  is  en- 
gaged in  buying,  (h)  For  any  person,  firm,  corporation 
or  association  to  solicit  the  trade,  patronage,  or  good  will 
of  any  person,  firm,  corporation,  or  association  within  the 
State  of  North  Carolina,  by  the  means  of  false  statements 
as  to  his,  their  or  its  connection,  alliance,  or  relationship 
to  other  persons,  firms,  corporations,  or  associations,  or  as 
to  the  ownership  of  his,  their,  or  its  business.  (L.  1911, 
c.  167,  Sec.  1.) 

That  if  it  shall  be  made  to  appear  to  the  Attorney- 
General  by  satisfactory  affidavit  (which  affidavit  may  be 
made  up  on  information  and  belief,  and  when  so  made 
shall  state  the  grcrund  thereof)  that  any  corporation  is 
violating  any  of  the  provisions  of  this  act  within  the 
State,  it  shall  be  the  duty  of  the  Attorney-General  to 
apply  to  a  judge  of  the  Superior  Court  for  an  order  to 


KOBTH   CAROLINA.  233 

cause  such  corporation,  its  officers  and  agents,  or  any 
of  them,  to  appear  before  such  judge  at  a  time  and  place 
to  be  named  by  him,  which  time  shall  not  be  less  than  five 
days  from  the  service  of  such  order,  to  show  cause  why 
such  corporation,  its  officers  and  agents,  or  any  of  them 
should  not  produce  before  such  judge,  at  a  time  and  place 
to  be  named,  all  the  papers,  books  and  records  of  such 
corporation;  and  if  the  judge  shall  be  satisfied  that  such 
books,  papers  and  records  should  be  so  produced  he  shall 
make  an  order  requiring  such  corporation,  its  officers  and 
agents,  or  any  of  them,  to  produce  all  or  any  of  its  pa- 
pers, books  and  records,  to  be  examined  by  the  Attorney- 
General  in  the  presence  of  such  judge.  Upon  application 
by  the  attorney-general  or  any  solicitor  to  a  judge  of  the 
superior  court,  the  judge  may  order  any  person  or  per- 
sons to  appear  before  him  to  be  examined  in  regard  to 
any  violations  of  this  act,  and  persons  so  summoned 
shall  be  paid  the  usual  fees  and  expenses  allowed  to  wit- 
nesses. If  any  corporation,  its  officers  or  agents,  or  other 
person,  shall  fail  to  appear  or  shall  fail  to  produce  such 
papers,  books  or  records  as  may  be  required,  it  or  he  shall 
be  guilty  of  a  misdemeanor,  and  it  shall  be  the  duty  of 
the  attorne}^-general  to  cause  such  corporation  or  person 
to  be  prosecuted  therefor.  When  it  shall  be  made  to  ap- 
pear that  the  papers,  books  or  records  of  any  such  cor- 
poration, or  any  of  them,  are  without  the  limit  of  the 
state  or  that  they  cannot  conveniently  be  produced  before 
the  judge  for  examination,  as  hereinbefore  provided,  such 
judge  may  issue  a  commission  for  the  examination  of 
such  papers,  books  and  records  before  a  commissioner  to 
be  named  by  him.  All  examinations  under  this  section 
shall  be  under  oath,  and  false  swearing  shall  constitute 
perjury,  punishable  as  in  other  cases  of  perjury.  Re- 
fusal to  answer  any  question  or  questions  asked  on  such 
examination,  and  required  by  the  judge  to  be  answered^ 
shall  constitute  and  be  punishable  as  contempt.  (Id.,, 
Sec.  2.) 

That  no  person  who  is  subpoenaed  and  required  by  the 
state  to  testify  under  the  provisions  of  this  act  shall  be 
prosecuted  or  convicted  on  account  of  matters  disclosed 
by  the  testimony  of  such  witnesses,  nor  shall  the  testi- 
mony of  such  witnesses  be  received  from  any  court  in 
any  prosecution  against  such  person.  (Id.,  Sec.  3.) 

That  any  corporation,  either  as  agent  or  principal,  vio- 
lating any  of  the  provisions  of  this  act,  shall  be  guilty  of 


234  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

n,  misdemeanor,  and  such  corporation  shall  upon  convic- 
tion be  fined  not  less  than  one  thousand  dollars  for  each 
jind  every  offense,  and  any  person  violating  any  of  the 
provisions  of  this  act  shall  be  guilty  of  a  misdemeanor 
and  upon  conviction  shall  be  fined  not  less  than  fbTe  hun- 
dred dollars  or  imprisoned  within  the  discretion  of  the 
court.  (Id.,  Sec.  6.) 

That  any  person  being  either  within  or  without  the 
state,  who  encourages  or  wilfully  allows  or  permits  any 
agent  or  associates  in  business  in  this  state  to  violate  any 
of  the  provisions  of  this  act,  shall  be  guilty  of  a  misde- 
meanor and  upon  conviction  shall  be  punished  as  pro- 
vided in  section  6  hereof.  (Id.,  Sec.  7.) 

That  violation  of  any  of  the  provisions  of  this  act  shall 
subject  the  offender  to  a  penalty  of  one  hundred  dollars 
per  day,  which  may  be  recorded  for  his  own  benefit  by 
any  citizen  of  the  state.  (Id.,  Sec.  7-J.) 

That  where  the  things  prohibited  in  section  1  of  this 
act  are  continuous,  then  in  such  event  after  the  first  vio- 
lation of  any  of  the  provisions  hereof,  the  violations  of 
the  provisions  of  this  act  for  each  week  during  which 
such  violations  shall  continue  shall  constitute  a  separate 
offense.  (Id.,  Sec.  8.) 

That  the  provisions  of  this  act  shall  not  be  construed 
so  as  to  repeal  or  restrict  the  common  law  doctrine  pre- 
venting unlawful  combination  in  trade  and  commerce, 
which  are  hereby  re-enacted  and  declared  to  be  in  full 
force  in  this  state,  except  as  may  be  inconsistent  with 
the  other  provisions  of  this  act.  (Id.,  Sec.  9.) 

That  it  shall  be  competent  to  charge  any  or  all  of  the 
offenses  mentioned  in  section  one  of  this  act  in  a  single 
bill  of  indictment  in  separate  counts.  Exclusive  original 
jurisdiction  of  all  violations  of  this  act  shall  be  in  the 
superior  courts  of  this  state,  anything  in  this  act  estab- 
lishing a  recorder's  court  to  the  contrary  notwithstand- 
ing. (Id.,  Sec.  10.) 

ACT  1913. 

4 

AN  ACT  To  declare  illegal  trusts  and  combinations  in  restraint  of 

trade. 

combinations  SECTION  1.  That-  every  contract,  combination  in  the 
?  feds  °dec£red  ^orm  °^  ^ru.st  or  otherwise,  or  conspiracy  in  restraint  of 
illegal.  trade  or  commerce  in  the  State  of  North  Carolina  is 


NORTH    CAROLINA.  235 


hereby  declared  to  be  illegal.    Every  person  or  corpora-  c  <f  ""p*  c  t  s 
tion  who  shall  make  any  such  contract  expressly  or  shall  U^^JJ*  mis" 
knowingly  be  a  party  thereto  by  implication,  or  who  shall 
engage  in  any  such  combination  or  conspiracy,  shall  be 
guilty  of  a  misdemeanor,  and  upon  conviction  thereof  men? 
such  person  shall  be  fined  or  imprisoned  or  both  in  the  so 
discretion  of  the  court,  whether  such  person  entered  into 
such  contract  individually  or  as  an  agent  representing  a 
corporation,  and  such  corporation  shall  be  fined  in  the     Punishment 

as   to   corpora- 

discretion  of  the  court  not  less  than  one  thousand  dollars, 


SEC.  2.  That  any  act,  contract,  combination  in  the  form 
trust,  and  conspiracies  in  restraint  of  trade  or  commerce 
which  violates  the  principles  of  the  common  law  is  hereby 
declared  to  be  in  violation  of  section  one  of  this  act. 

SEC.  3.  That  all  contracts,  combinations  in  the  form  of    Contracts, 

'  combinations 

trust,  and  conspiracies  in  restrain  of  trade  or  commerce  and    conapira- 

cies    declared 

prohibited  in  sections  one  and  two  of  this  act,  are  hereby  J[J,j[e1a1|0*1able 

declared  to  be  unreasonable  and  illegal,  unless  the  persons 

entering  into  such  contract,  combination  in  the  form  of     Burden   of 

.     .       „  ,        ,  proof     on     de- 

trilSt,  or  conspiracy  in  restraint  of  trade  or  commerce  canfendant. 
show  affirmatively  upon  an  indictment  or  civil  action  for 
violation  of  sections  one  and  two  of  this  act  that  such 
contract,  combination  in  the  form  of  trust,  conspiracy  in 
restraint  of  trade  or  commerce  does  not  injure  the  busi- 
ness of  any  competitor,  or  prevent  any  one  from  becoming 
a  competitor  because  his  or  its  business  will  be  unfairly 
injured  by  reason  of  such  contract,  combination  in  the 
form  of  trust,  or  conspiracy  in  restraint  of  trade  or  com- 
merce. 

SEC.  4.  That  no  contract  or  agreement  hereafter  made,     contracts 

...  .  1  not  enforceable 

limiting  the  rights  of  any  person  to  do  business  anywhere  unless  executed 

in  the  State  of  North  Carolina  shall  be  enforceable  un- 

less such  agreement  is  in  writing  duly  signed  by  the  party 

who  agrees  not  to  enter  into  any  such  business  within  such 

territory  :  Provided,  nothing  herein  shall  be  construed  to  .  Proviso  :  con- 

J  .  .    t  r  a  c  t  s    no  t 

legalize  any  contract  or  agreement  not  to  enter  into  busi-  legalized. 
ness  in  the  State  of  North  Carolina,  or  at  any  point  in  the 
State  of  North  Carolina,  which  contract  is  now  illegal,  or 
which  contract  is  made  illegal  by  any  other  section  of 
this  act. 

SEC.  5.  That  in  addition  to  the  matters  and  things  here-  laratfoneof  dun- 
inbef  ore  declared  to  be  illegal,  the  following  acts  are  de-  lawful  acts. 
clared  to  be  unlawful,  that  is,  for  any  person,  firm,  cor- 
poration. or  association  to  directly  or  indirectly  do  or 


236  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

have  any  contract,  express  or  knowingly  implied,  to  do, 
any  of  the  acts  or  things  specified  in  any  of  the  subsec- 
tions of  this  section. 

consgrira?entto      (a)   ^°  a&'ree  or  conspire  with  any  other  person,  firm, 

reduce  prices,   corporation  or  association  to  put  down  or  keep  down  the 

price  of  any  article  produced  in  this  State  by  the  labor  of 

others,  which  said  article  said  person,  firm,  corporation 

or  association  intends,  plans  or  desires  to  buy. 

onSconSdftion      (b)   To  make  a  sale  or  sales  of  any  goods,  wares,  mer- 

shlii  Pnothdeti  chandise,  articles  or  things  of  value  whatsoever  in  North 

with  rival.        Carolina,  whether  directly  or  indirectly,  or  through  any 

agent  or  employee,  upon  the  condition  that  the  purchaser 

thereof  shall  not  deal  in  the  goods,  wares,  merchandise, 

articles  or  things  of  value  of  a  competitor  or  rival  in  the 

business  of  the  person,  firm,  corporation  or  association 

making  said  sales. 

attempt1^  in'  (c)  ^°  ^iU^ulty  destroy  or  injure,  or  undertake  to 
intent1  vatoWifix  destroy  °r  injure,  the  business  of  any  opponent  or  business 
fromescompetie  r*va*  *n  ^  State  °*  North  Carolina  with  the  piurpose  or 
tlon-  intention  of  attempting  to  fix  the  price  of  anything  of 

value  when  the  competition  is  removed. 

sei5nywi«i  in'  (^  Who  directly  or  indirectly  buys  or  sells  within  the 
ornin*ureebusiy  State,  through  himself  or  itself,  or  through  any  agent  of 
bes^afffectinalany  kind  or  as  agent  or  principal,  or  together  with  or 
tenteof  Tncreas  through  any  allied,  subsidiary  or  dependent  person,  firm, 
ing  profit  by  corporation  or  association,  any  article  or  thing  of  value 

change      of         x  ?./ 

srlCnSdesfrucr  w^c^  ^s  so^  or  bought  in  the  State  to  injure  or  destroy 
tion    and    in-  Or  undertake  to  injure  or  destroy  the  business  of  any  rival 
or  opponent,  by  lowering  the  price  of  any  article  or  thing 
of  value  sold,  so  low,  or  by  raising  the  price  of  any  article 
unreasonable  or  thing  of  value  bought,  so  high  as  to  leave  an  unreason- 
able or  inadequate  profit  for  a  time,  with  the  purpose  of 
increasing  the  profit  on  the  business  when  such  rival  or 
opponent  is  driven  out  of  business,  or  his,  their  or  its 
business  is  injured. 

prile*ribetween      (e)   Who  deals  in  any  thing  of  value  within  the  State 
intentietoWiiJ  °^  North  Carolina,  to  give  away  or  sell,  at  a  place  where 
ofranotheriness  there  is  competition,  such  thing  of  value  at  a  price  lower 
than  is  charged  by  such  person,  firm,  corporation  or  as- 
sociation, for  the  same  thing  at  another  place,  where  there 
is  not  good  and  sufficient  reason,  on  account  of  transpor- 
tation or  the  expense  of  doing  business,  for  charging  less 
at  the  one  place  than  at  the  other,  with  the  view  of  injur- 
ing the  business  of  another. 


NORTH    CAROLINA.  237 


(f)  Who  is  engaged  in  buying  or  selling  any  thing  of 
value  in  North  Carolina,  to  make  or  have  any  agreement 
or  understanding,  express  or  implied,  with  any  other  per- 
son,  firm,  corporation  or  association,  not  to  buy  or  sellsuch  localities. 
said  things  of  value  within  certain  territorial  limits 
within  the  State,  with  intention  of  preventing  competi- 
tion in  selling  or  to  fix  the  price  or  prevent  competition 
in  buying  of  said  things  of  value  within  these  limits: 
Provided,  nothing  herein  shall  be  construed  ito  prevent  an  Proviso: 

.       .       ,        -r,     .  agent    repre- 

agent  from  representing  more  than  one  principal.     Butsenting  more 

.        .       than  one  prin- 

nothing  in  this  proviso  shall  be  construed  to  authorize  cipai. 
two  or  more  principals  to  employ  a  common  agent  for 
the    purpose    of    suppressing    competition    or    lowering 
prices:  Provided,  further,  that  nothing  herein  shall  beof^jg^^J 
construed  to  prevent  a  person,  firm  or  corporation  from  good  wil1- 
selling  his  or  its  business  and  good  will  to  a  competitor, 
and  agreeing  in  writing  not  to  enter  the  business  in  com- 
petition with  the  purchaser  in  a  limited  territory,  as  is 

now   allowed   under   the   common   law:  Provided,   such    Proviso  :  con- 

dition  of  sale 

agreement  shall  not  violate  the  principles  of  the  common  JJfUBtgo£{Jt  Jg}.1 
law  against  trusts  and  shall  not  violate  the  provisions  of 
this  act. 

That  any  corporation,  either  as  agent  or  principal,  vio-  Rumy  PofraS?sn- 
lating  any  of  the  provisions  of  this  section  shall  be  guilty  demeanor- 
of  a  misdemeanor,  and  such  corporation  shall  upon  con-  • 

viction  be  fined  not  less  than  one  thousand  dollars  for    Punishment. 
each  and  every  offense,  and  any  person,  whether  acting    Person  guilty 
for  himself  or  as  officer  of  any  corporation  or  as  agent  meaner. 
of  any  corporation  or  person  violating  any  of  the  provi- 
sions of  this  act  shall  be  guilty  of  a  misdemeanor  and 
upon  conviction  shall  be  fined  or  imprisoned,  or  both,  in    Punishment. 
the  discretion  of  the  court. 

SEC.  6.  That  any  person,  being  either  within  or  with- 
out  the  State,  who  encourages  or  willfully  allows  or  per- 
mits  any  agent  or  associates  in  business  in  this  State  to  *^5ty  °0f  mjB 
violate  any  of  the  provisions  of  this  act,  shall  be  guilty  of  demeanor. 
a  misdemeanor,  and  upon  conviction  shall  be  punished    Punishment. 
as  provided  in  section  five  hereof. 

SEC.  7.  That  where  the  things  prohibited  in  this  act  co^tinuoubs!tion 
are  continuous,  then  in  such  event,  after  the  first  viola- 
tion of  any  of  the  provisions  hereof,  each  week  that  the 
violation  of  such  provision  shall  continue  shall  be  a  sepa-  fenSeePsarate  * 
rate  offense. 

SEC.   8.  That  the   Attorney-General  of  the   State  of  ^Ft™*!!?™ 
North  Carolina  shall  have  the  power,  and  it  shall  be  his  J?£jjon°g*  cor" 


238  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

duty,  to  investigate,  from  time  to  time,  the  affairs  of  all 
corporations  doing  business  in  this  State,  which  are  or 
may  be  embraced  within  the  meaning  of  the  statutes  of 
this  State  defining  and  denouncing  trusts  and  combina- 
tions against  trade  and  commerce,  or  which  he  shall  be  of 
opinion  are  so  embraced,  and  all  other  corporations  in 
North  Carolina  doing  business  in  violation  of  law;  and 
all  other  corporations  of  every  character  engaged  in  busi- 
ness in  this  State  of  transporting  property  or  passengers, 
or  transmitting  messages  and  all  other  public  service  cor- 
porations of  any  kind  or  nature  whatever  which  are  doing 
business  in  the  State  for  hire,  with  a  view  of  ascertaining 
whether  the  law  or  any  rule  of  the  North  Carolina  Corpo- 
ration Commission  is  being  or  has  been  violated  by  any 
such  corporation,  officers  or  agents  or  employees  thereof, 
and  if  so,  in  what  respect,  with  the  purpose  of  acquiring 
such  information  as  may  be  necessary  to  enable  him  to 
prosecute  any  such  corporation,  its  agents,  officers  and 
employees  for  crime,  or  prosecute  civil  actions  against 
them  if  he  discovers  they  are  liable  and  should  be  prose- 
cuted. 
Powers  ot  SEC.  9.  That  to  this  end  the  Attorney-General  shall 

attorney-gen-  1          ^ 

erai  in  making  have  power,  at  any  and  all  times,  to  require  the  omcers, 

investigations.  J  /?  a     it     ^ 

4  agents  or  employees  of  any  such  corporation,  and  all  other 

persons  having  knowledge  with  respect  to  the  matters  and 
affairs  of  such  corporations,  to  submit  themselves  to  ex- 
amination by  him,  and  produce  for  his  inspection  any 
of  the  books  and  papers  of  any  such  corporations,  or 
which  are  in  any  way  connected  with  the  business  thereof ; 
minister  oathl  an(l  the  Attorney- General  is  hereby  given  the  right  to  ad- 
minister oath  to  any  person  whom  he  may  desire  to  ex- 
f or1  P order  U  of amme-    He  shall  also,  if  it  may  become  necessary,  have 
discovery.        a  right  to  apply  to  any  judge  of  the  Supreme  or  Superior 
Court,  after  five  days  notice  of  such  application,  for  an 
order  on  any  such  person  or  corporation  he  may  desire 
to  examine  to  appear  and  subject  himself  or  itself  to  such 
Disobedience  examination,  and  disobedience  of  such  order  shall  con- 

of    order    con- 

an™ptunisnabie  s^^u^e  contempt,  and  shall  be  punishable  as  in  other 

as  such.          cases  of  disobedience  of  a  proper  order  of  such  judge: 

Proviso:  im- Provided,  that  no  person  so  examined  shall  be  subject  to 

munity  to  wit-  L 

nesses.  indictment,  prosecution,  punishment  or  penalty  by  reason 

or  on  account  of  anything  disclosed  by  him  upon  such  ex- 
amination, and  full  immunity  to  prosecution  and  punish- 
ment by  reason  or  on  account  of  anything  so  disclosed  is 
hereby  extended  to  all  persons  so  examined. 


NORTH    CAROLINA.  239 

SEC.  10.  That  any  corporation  unlawfully  refusing  or     Refusal  or 

J  J  &         neglect  of  cor- 

will fully  neglecting  to  furnish  the  information  required  SSfti^J*JJ' 
by  this  act  when  it  is  demanded  as  herein  provided  shall tion   m  l  s  d  e  - 

*          ,  *-  meanor. 

be  guilty  of  a  misdemeanor  and  fined  not  less  than  one  Punishment, 
thousand  dollars:  Provided,  that  if  any  corporation  shall  time'anS \5ace 
in  writing  notify  the  Attorney- General  that  it  objects  to 
the  time  or  place  designated  by  him  for  the  examination 
or  inspection  provided  for  in  the  ninth  section  hereof,  it order  of  court< 
shall  be  his  duty  to  apply  to  a  judge  of  the  Supreme  or 
Superior  Court  who  shall  fix  an  appropriate  time  and 
place  for  such  examination  or  inspection,  and  such  corpo-  corporation 
ration  shall,  in  such  event,  be  guilty  under  this  section,  5re!trefusaiaoi« 
only  in  the  event  of  its  failure,  refusal  or  neglect  to  ap-  pe,?recand°  fur- 
pear  at  the  time  and  place  so  fixed  by  said  judge  and  fur-  ?ioJ.  informa- 
nish  the  information  required  by  this  act.  False  swearing  Faise  swear- 
by  any  person  examined  under  the  provisions  of  this  act 
shall  constitute  perjury,  and  the  person  guilty  of  it  shall 
be  punishable  as  in  other  cases  of  perjury. 

SEC.  11.  If  it  shall  become  necessary  to  do  so,  the  At-     Remedy   by 

-,  .    .,      *Y.  .        '  mandamus. 

torney- General  may  prosecute  civil  actions  in  the  name 
of  the  State  on  relation  of  the  Attorney-General  to  ob- 
tain a  mandatory  order  to  carry  out  the  provisions  of 
this  act,  and  the  venue  shall  be  in  any  county  as  selected     venue, 
by  the  Attorney-General. 

SEC.  12.  That  it  shall  be  the  duty  of  the  Attorney-Gen-    Attorney-gen? 

J  eral    to    prose. 

eral,  upon  his  ascertaining  that  the  laws  have  been  vio-  cu*e  actions, 
lated  by  any  trust  or  public  service  corporation,  so  as  to 
render  it  liable  to  prosecution  in  a  civil  action,  to  prose- 
cute such  action  in  the  name  of  the  State,  or  any  officer 
or  department  thereof,  as  provided  by  law,  or  in  the  name 
of  the  State  on  relation  of  the  Attorney-General,  and  to 
prosecute  all  officers  or  agents  or  employees  of  such  corpo-  ofPeS?g0ecilti01* 
rations,  whenever  in  his  opinion  the  interests  of  the  pub- 
lic require  it. 

SEC.  13.  That  the  Attorney- General  in  carrying  out  the    Attorney  gen- 

J  .  i .          efal  may  send 

provisions  of  this  act  shall  have  a  right  to  send  bills  of  wii^  of  indict- 

indictment  before  any  grand  jury  in  any  county  in  which 

it  is  alleged  this  act  has  been  violated  or  in  any  adjoining 

county,  and  may  take  charge  of  and  prosecute  all  cuses  chM  a  3^  *  **  • 

coming  within  the  purview  of  this  act,  and  shall  have  the  ecution. 

power  to  call  to  his  assistance  in  the  performance  of  any 

of  these  duties  of  his  office  which  he  may  assign  to  them  soltcftorance  °f 

any  of  the  solicitors  in  the  State,  who  shall,  upon  being 

so  required  to  do  so  by  the  Attorney- General,  send  bills  of 

indictment  and  assist  him  in  the  performance  of  the  duties 


240  LAWS   ON   TBUSTS  AND  MONOPOLIES. 

payments1  s  °t  o  of  his  office :  Provided,  that  the  State  shall  pay  the  actual 
solicitors.  an(j  necessary  expenses  of  the  solicitor  incurred  while  per- 
forming such  duties  and  not  over  one  hundred  dollars  as 
an  extra  fee  when  the  expense  account  is  approved  by  the 
Attorney-General  and  Governor,  and  duly  audited,  and 
the  amount  of  the  fee  is  fixed  by  them. 

act f     That  the  necessary  expenses  incident  to  carrying  out 
the  provisions  of  this  act  shall,  when  approved  by  the 
Governor  and  audited,  be  paid  out  of  any  money  in  the 
state  treasury  not  otherwise  appropriated, 
injury     SEC.  14.  That  if  the  business  of  any  person,  firm  or 
o  business,      corporation  shall  be  broken  up,  destroyed  or  injured  by 
reason  of  any  act  or  thing  done  by  any  other  person,  firm 
or  corporation  in  violation  of  the  provisions  of  this  act, 
such  person,  firm  or  corporation  so  injured  shall  have  a 
right  of  action  on  account  of  such  injury  done,  and  if 
Treble  dam-  damages  are  assessed  by  a  jury  in  such  case  judgment 
shall  be  rendered  in  favor  of  the  plaintiff  and  against  the 
defendant  for  treble  the  amount  fixed  by  the  verdict. 
Acts  hereto      SEC.  15.  That  nothing  herein  shall  be  construed  to  re- 

rorecom- 

mitted.  peal  the  present  law  so  far  as  it  applies  to  acts  committed 

prior  to  the  ratification  of  this  act.  With  this  exception 
all  laws  and  clauses  of  laws  in  conflict  with  this  act  are 
repealed  as  of  the  date  when  this  act  becomes  effective. 

In  the  General  Assembly  read  three  times  and  ratified 
this  the  3d  day  of  March,  1913. 

COURT  DECISIONS. 

Thrift  v.  Elizabeth  City,  122  N.  C.,  31 ;  44  L.  E.  A.,  427, 
State  v.  Biggs,  133  N.  C.,  729 ;  64  L.  K.  A.,  139. 
St.  George  v.  Hardie,  147  N.  C.,  88. 


NORTH   DAKOTA. 

CONSTITUTION. 

ART.  VII,  SEC.  146.  Any  combination  between  indi- 
viduals, corporations,  associations,  or  either,  having  for 
its  object  the  effect  of  controlling  of  the  price  of  any 
product  of  the  soil  or  any  article  of  manufacture  or  com- 
merce, or  the  cost  of  exchange  or  transportation,  is  pro- 
hibited and  hereby  declared  unlawful  and  against  public 
policy;  and  any  and  all  franchises  heretofore  granted  or 
extended,  or  that  may  hereafter  be  granted  or  extended 
in  this  state,  whenever  the  owner  or  owners  thereof  vio- 
late this  article,  shall  be  deemed  annulled  and  become 
void. 

STATUTES. 

ANTI-TRUST  LAW  OF    1907. 

SECTION  1.  Any  corporation  organized  under  the  laws 
of  this  state  or  any  other  state  or  country  for  transacting 
or  conducting  any  kind  of  business  in  this  state,  or  any 
partnership,  association  or  individual  creating,  entering 
into  or  becoming  a  member  of,  or  a  party  to,  any  pool, 
trust,  agreement,  contract,  combination,  confederation  or 
individual,  to  regulate  or  fix  the  price  of  any  article  of 
merchandise,  commodity  or  property,  or  to  fix  or  limit 
the  amount  or  quantity  of  any  article,  property,  mer- 
chandise or  commodity  to  be  manufactured,  mined,  pro- 
duced, exchanged  or  sold  in  this  state,  shall  be  guilty  of  a 
misdemeanor. 

SEC.  2.  A  pool  or  a  trust  is  a  combination  of  capital, 
skill  or  acts  by  two  or  more  persons,  firms,  corporations 
or  associations  of  persons,  or  two  or  more  of  them  for 
either,  any  or  all  of  the  following  purposes : 

1.  To  create  or  carry  out  restrictions  in  trade. 

2.  To  limit  or  reduce  the  production,  or  increase  or 
reduce  the  price,  of  property,  merchandise  or  commod- 
ities. 

16491—13 16  241 


242  LAWS   OX    TRUSTS  AND   MONOPOLIES. 

3.  To  fix  at  any  standard  or  figure,  whereby  its  price 
to  the  public  shall  be  in  any  manner  controlled  or  estab- 
lished, upon  any  property,  article  or  commodity  of  mer- 
chandise, produce  or  manufacture  intended  for  sale,  use 
or  consumption  in  this  state;  or  to  establish  any  pre- 
tended agency  whereby  the  sale  of  any  such  property, 
article  or  commodity  shall  be  covered  up  or  made  to  ap- 
pear to  be  for  the  original  vendor,  or  a  like  purpose  or 
purposes. 

4.  To  make  or  enter  into  or  carry  out  any  contract, 
obligation  or  agreement  of  any  kind  or  description  by 
which  they  shall  bind  or  have  bound  themselves  not  to 
sell,  dispose  of  or  transport  any  property,  commodity  or 
article  of  trade,  use,  merchandise,  commerce  or  consump- 
tion below  a  common  standard  figure,  or  card  price  list, 
or  by  which  they  shall  agree  in  any  manner  to  keep  the 
price  of  such  article,  commodity  or  transportation  at  a 
fixed  or  graduated  figure,  or  by  which  they  shall  in  any 
manner  establish  or  settle  the  price  of  any  property,  ar- 
ticle or  commodity  or  transportation  between  them  or 
themselves  and  others  to  preclude  a  free  and  unrestricted 
competition  among  themselves  or  others  in  the  sale  or 
transportation  of  any  such  article  or  commodity,  or  by 
which  they  shall  agree  to  pool,  combine  or  unite  any  in- 
terest they  may  have  in  connection  with  the  sale  or  trans- 
portation of  any  article  or  commodity  that  its  price  might 
in  any  manner  be  affected. 

SEC.  3.  Every  corporation  whether  organized  under 
the  laws  of  this  state  or  any  other  state  or  country,  doing 
business  in  this  state,  and  every  person,  partnership  or 
association  of  individuals  so  doing  business,  violating 
any  of  the  provisions  of  this  chapter,  is  guilty  of  a  mis- 
demeanor and  upon  conviction  thereof  shall  be  punished 
by  a  fine  of  not  less  than  one  hundred  dollars  nor  more 
than  five  thousand  dollars. 

SEC.  4.  Every  person  who,  as  president,  manager,  di- 
rector, stockholder^  receiver  or  agent  or  other  employee 
of  any  corporation,  on  behalf  of  such  corporation  men- 
tioned in  the  last  section,  or  as  a  member  of  any  partner- 
ship or  association  of  individuals,  violates  any  of  the 
provisions  of  this-. chapter,  upon  conviction  shall  be  fined 
not  to  exceed  two  thousand  dollars,  or  imprisoned  in  the 
county  jail  not  to  exceed  one  year,  and,  in  the  discretion 
of  the  court,  a  sentence  of  both  fine  and  imprisonment 
may  be  imposed., 


NORTH  DAKOTA.  243 

SEC.  5.  Every  domestic  or  foreign  corporation  author- 
ized to  do  business  in  this  state,  which  shall  have  been 
found  guilty  in  any  court  of  competent  jurisdiction  of 
violating  any  of  the  provisions  of  this  chapter,  is  hereby 
denied  the  right  of  any  prohibited  from  doing  business 
in  this  state,  and  the  charter,  articles  of  incorporation  or 
authority  granted,  authorizing  such  corporation  to  do 
business  in  this  state,  shall  cease  and  become  void ;  and  it 
shall  become  the  duty  of  the  secretary  of  state,  upon  the 
filing  in  his  office  of  a  certified  copy  of  such  judgment,  to 
immediately  cancel  the  authorization  or  charter  of  such 
corporation  and  give  such  corporation  written  notice  of 
such  cancellation. 

SEC.  6.  In  any  information  or  indictment  for  any  of- 
fense named  in  this  chapter  it  is  sufficient  to  state  the 
purposes  of  the  trust  or  combination  and  that  the  ac- 
cused is  a  member  of,  acted  with  or  in  pursuance  to  it, 
without  giving  its  name  or  description,  or  how  or  where 
it  was  created. 

SEC.  7.  In  prosecutions  under  this  chapter  it  shall  be 
sufficient  to  prove  that  a  trust  or  combination  exists  and 
that  the  defendant  belonging  to  it  or  acted  for  or  in  con- 
nection with  it,  without  proving  all  the  members  belong- 
ing to  it  or  proving  or  producing  any  articles  of  agree- 
ment or  any  written  instrument  on  which  it  may  have 
been  based:  or  that  it  was  evidenced  by  any  written  in- 
strument at  all,  and  proof  that  any  person  has  been  act- 
ing as  agent  of  any  defendant  in  transacting  the  business 
of  such  defendant  in  this  state,  was,  while  agent  of  such 
defendant  and  in  the  name,  behalf  or  interest  of  such 
defendant,  violated  any  of  the  provisions  of  this  chapter, 
shall  constitute  prima  facie  proof  that  the  same  was  the 
act  of  such  defendant. 

SEC.  8.  Any  contract  or  agreement  in  violation  of  the 
provisions  of  this  chapter  shall  be  absolutely  void  and 
not  enforceable  either  in  law  or  in  equity. 

SEC.  9.  No  purchaser  of  any  property,  article  or  other 
commodity  from  any  individual^  company,  association  or 
individuals  or  corporation  transacting  business  contrary 
to  any  provisions  of  the  preceding  sections  of  this  chap- 
ter, shall  be  liable  for  the  price  or  payment  of  such  prop- 
erty, article  or  commodity,  and  may  plead  this  chapter  as 
a  defense  in  any  suit  for  such  price  or  payment. 

SEC.  10.  Whenever  any  proceeding  shall  have  been 
commenced  in  any  court  of  competent  jurisdiction  in 


244  LAWS   ON    TEUSTS   AND   MONOPOLIES. 

this  state  by  the  attorney-general  against  any  corpora- 
tion or  corporations,  individual  or  individuals,  or  asso- 
ciation of  individuals,  co-partnership  or  joint  stock 
company  or  other  association,  under  any  of  the  pro- 
visions of  this  chapter,  and  the  attorney-general  desires 
to  take  the  testimony  of  any  officer,  director,  agent  or 
employee  of  any  such  corporation,  individual,  co-part- 
nership, joint  stock  company  or  association  proceeded 
against,  or  any  member  or  employee  thereof  in  any  court 
in  which  said  action  may  be  pending,  or  before  any  per- 
son duly  authorized  by  any  court  to  take  testimony  in  any 
such  action,  and  such  individual  or  individuals  whose  tes- 
timony is  desired  are  without  the  jurisdiction  of  the 
courts  of  this  state  or  reside  without  the  state  of  North 
Dakota,  or  cannot  be  found  within  this  state,  then  in 
such  case,  the  attorney-general  may  file  in  the  court  in 
which  said  action  is  pending,  in  term  time  or  in  vacation, 
or  with  any  judge  thereof  or  with  any  person  duly  au- 
thorized to  take  the  testimony  in  such  action,  an  appli- 
cation in  writing  stating  therein  the  name  or  names  of 
the  persons  or  individuals  whose  testimony  he  desires  to 
take,  and  the  time  when  and  place  where  he  desires  the 
said  person  to  appear  and  testify,  and  thereupon  the 
court  in  which  said  action  is  pending,  or  a  judge  thereof, 
or  the  person  before  whom  testimony  is  being  taken, 
shall  immediately  issue  a  notice  in  writing,  directed  to 
the  attorney  or  attorneys  of  record,  if  any.  in  said  cause 
appearing  for  any  such  defendant  or  defendants  or  to 
any  defendant,  agent,  officer  or  employee  of  any  such 
defendant  or  defendants  who  are  parties  to  said  action, 
notifying  said  defendant,  attorney  or  attorneys  of  record 
for  such  defendant  or  other  officer,  agent  or  employee  of 
any  such  party  defendant  that  the  testimony  of  the  per- 
son or  persons  named  in  the  application  of  the  attorney- 
general  is  desired  and  requiring  such  persons  named  to 
appear  at  the  time  and  place  therein  stated  then  and  there 
to  testify  in  said  action,  and  requiring  said  defendant, 
attorney  or  attorneys  of  record  for  any  such  defendant 
or  such  officer,  agent  or  employee  of  any  such  defendant 
to  whom  said  notice  is  delivered,  or  upon  whom  the  same 
is  served,  to  have-^aid  officer,  agent,  employee  or  repre- 
sentative of  such  defendant  or  defendants  named  in  such 
notice  whose  evidence  it  is  desired  to  take,  at  the  place 
named  in  said  notice  and  at  the  time  therein  fixed,  then 
and  there  to  testify ;  provided,  however,  that  such  notice 


NOKTH   DAKOTA.  245 

shall  always  allow  the  persons  required  to  testify  such 
reasonable  time  for  travel  to  the  designated  point  where 
such  testimony  is  required  to  be  given  as  will,  in  the 
judgment  of  the  court,  be  sufficient  to  permit  the  person 
cited  to  appear,  to  be  present  at  the  time  and  place  des- 
ignated in  such  notice ;  provided  also,  that  such  time  shall 
in  no  case  be  less  than  ten  days  from  the  service  of  such 
notice.  Such  notice  may  be  served  by  any  person  au- 
thorized by  law  to  serve  a  subpoena. 

SEC.  11.  Whenever  any  defendant,  attorney  or  at- 
torneys of  record,  or  any  agent,  officer  or  employee 
of  any  such  party  defendant  shall  have  been  notified 
as  provided  in  the  preceding  section  to  require  any 
officer,  agent,  director  or  other  employee  to  attend  be- 
fore any  court  or  other  person  authorized  to  take  the 
testimony  as  therein  provided,  shall  fail  to  appear  and 
testify  or  fail  to  produce  such  books,  papers  or  documents 
as  he  or  they  shall  have  been  ordered  to  produce  by  the 
court  or  the  person  authorized  to  take  said  evidence,  then 
it  shall  be  the  duty  of  the  court  before  whom  said  action 
is  pending,  upon  motion  of  the  attorney-general,  to  strike 
out  the  answer,  motion,  reply,  demurrer  or  other  plead- 
ing then  or  thereafter  filed  in  said  action  or  proceeding 
by  any  such  party  defendant  whose  officer,  agent,  director 
or  employee  has  neglected  or  failed  to  attend  or  testify 
or  to  produce  any  such  book,  papers  or  documents  as  he 
or  they  shall  have  been  ordered  to  produce  in  said  action 
by  the  court  or  the  person  authorized  to  take  such  testi- 
mony, and  said  court,  upon  motion  of  the  attorney-gen- 
eral, shall  render  judgment  by  default  against  any  such 
defendant.  In  case  any  officer,  agent,  employee,  director 
or  other  representative  or  any  such  defendant  as  here- 
inbefore mentioned,  who  shall  reside  in  or  be  found  with- 
in this  state,  shall  be  subpoenaed  to  appear  and  testify 
in  any  suit  or  proceeding  brought  under  the  provisions 
of  this  chapter,  or  to  produce  such  papers,  books  and 
documents  as  shall  have  been  ordered  produced  by  the 
court,  or  other  person  authorized  to  take  such  testimony, 
then  the  answer,  motion,  demurrer  or  other  pleading  then 
or  thereafter  filed  by  any  such  defendant  shall,  on  motion 
of  the  attorney-general,  be  stricken  out  and  judgment  in 
said  cause  rendered  as  on  default. 

SEC.  12.  The  court  in  which  any  action  or  suit  is 
brought  under  the  provisions  of  this  chapter  shall,  upon 
the  relation  of  the  attorney-general  made  either  at 


246  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

the  time  of  the  beginning  of  said  suit  or  at  any  time 
thereafter  during  its  pendency,  issue  an  injunction  en- 
joining any  defendant,  agents  or  other  employees  of  any 
such  defendant  from  selling  or  assigning  or  in  any  other 
manner  disposing  of  or  secreting  any  of  the  property  or 
assets  of  such  defendant  then  situated  in  this  state  during 
the  pendency  of  such  suit  and  enjoining  the  removal  of 
tiny  such  assets  or  other  property  from  the  jurisdiction  of 
this  state  or  the  courts  thereof;  provided,  however,  that 
such  injunction  shall,  on  motion  of  any  such  defendant, 
be  dissolved  upon  the  filing  of  a  bond  in  an  amount  to  be 
approved  by  the  court,  conditioned  that  the  defendant 
shall  pay  any  judgment,  fine  and  costs  finally  entered 
against  the  defendant  in  the  action  or  proceeding1'  in 
which  such  bond  is  filed. 

SEC.  13.  Judgment  for  fine  and  costs  shall  be  entered 
in  the  same  manner  as  in  civil  cases,  and  shall  be  enforced 
in  like  manner. 

SEC.  14.  In  addition  to  the  penalties  and  costs  provided 
for  in  this  chapter,  the  court  shall  allow  in  any  action 
brought  under  the  provisions  of  this  chapter,  a  reasonable 
attorney's  fee,  to  be  assessed  as  part  of  the  costs  of  said 
action,  which  attorney's  fee,  so  assessed  shall  go  to  the 
attorney-general  or  state's  attorney  who  conducted  the 
prosecution,  and  shall  be  retained  by  such  attorney- 
general  or  state's  attorney  as  additional  compensation  to 
that  otherwise  allowed  by  the  laws  of  this  state  as  such 
attorney-general's  or  state's  attorney's  salary.  (L.  1907, 
c.  259.) 

UNFAIR  COMPETITION    (AMENDED  ACT  MAR.   12,  1913). 

1.  Any  person,  firm,  corporation^  foreign  or  domes- 
tic, doing  business  in  the  state  of  North  Dakota  and 
engaged  in  the  production,  manufacture  or  distribu- 
tion of  any  commodity  in  general  use,  that  shall  inten- 
tionally, for  the  purpose  of  destroying  or  preventing 
competition,  discriminate  between  different  sections^ 
communities  or  cities  of  this  state  by  selling  any  such 
commodity  at  a  lower  rate  or  price  in  one  section,  com- 
munity or  city,  or  any  portion  thereof,  than  is  charged 
for  such  commodity  in  any  other  section,  community  or 
city,  after  equalizing  the  distance  from  the  point  of  man- 
ufacture, production  or  distribution  and  freight  rates 
therefrom,  or  who  shall  wilfully,  for  the  purpose  of  such 


NOBTH   DAKOTA.  247 

discrimination  and  unfair  competition,  refuse  to  sell  any 
commodity  in  general  use,  and  in  the  manufacture,  pro- 
duction or  distribution  of  which  such  person,  firm  or 
corporation  may  be  engaged,  to  any  other  person,  firm 
or  corporation  which  may  desire  to  purchase  the  same 
and  who  shall  comply  with  all  reasonable  regulations  of 
such  person,  firm  or  corporation  and  who  shall  tender 
payment  therefor,  shall  be  deemed  guilty  of  a  misde- 
meanor. 

2.  If  any  complaint  is  made  to  the  secretary  of  state 
that  any  corporation  chartered  in  this  state,  or  authorized 
to  do  business  therein,  is  or  has  been  guilty  of  unfair  dis- 
crimination within  the  terms  of  this  act,  it  shall  be  the 
duty  of  such  secretary  to  at  once  institute  an  inquiry  as  to 
such  discrimination,  giving  the  corporation  complained 
of  notice  of  such  complaint  and  an  opportunity  to  be 
heard,  and  if  in  the  opinion  of  such  secretary  of  state 
any  corporation,  foreign  or  domestic,  shall  have  been 
guilty  of  any  such  unfair  discrimination  under  the  terms 
of  this  act,  the  said  secretary  shall  so  find  and  shall 
make  a  record  of  such  finding  upon  the  records  in  his 
office,  and  shall  at  once  forfeit  the  charter  of  such  cor- 
poration, if  it  be  a  domestic  corporation,  or  if  it  be  a 
foreign  corporation  he  shall  immediately  revoke  and  for- 
feit its  permit  to  do  business  in  this  state. 

3.  If,  after  the  revocation  of  such  charter  in  the  case 
of  a  domestic  corporation,  or  of  its  permit  if  it  be  a  for- 
eign corporation,  any  such  corporation  shall  continue  or 
attempt  to  do  business  within  this  state,  it  shall  be  the 
duty  of  the  attorney-general  of  this  state  by  a  proper 
action  commenced  in  the  name  of  the  state,  to  oust  such 
corporation  from  any  and  all  business  of  any  kind  or 
character  within  the  state  of  North  Dakota. 

4.  Any  firm,  person  or  corporation  violating  any  of 
the  provisions  of  this  act  shall,  upon  conviction  thereof, 
forfeit  to  the  state  of  North  Dakota  a  sum  not  less  than 
two  hundred  nor  more  than  five  hundred  dollars  for  each 
and  every  violation  of  this  act,  said  sum  to  be  recovered 
by  action  commenced  by  the  attorney-general  in  the  name 
of  the  state  of  North  Dakota,  in  any  court  of  competent 
jurisdiction.     All  sums  so  collected  shall  be  credited  to 
the  general  school  fund  of  this  state. 

5.  Nothing  in  this  act  contained  shall  in  any  manner 
be  construed  as  repealing  or  in  any  manner  altering  any 


248  LAWS    ON    TRUSTS   AND   MONOPOLIES. 

other  act  or  part  of  act  heretofore  adopted  by  the  legisla- 
ture of  this  state,  but  the  remedies  herein  provided  shall 
be  cumulative  to  all  other  remedies  now  existing.  (L. 
1907,  c.  258.) 

DISCRIMINATION. 

1.  Any  person,  firm,  company,  association  or  corpora- 
tion,  foreign   or  domestic,  doing  business  in  the   state 
of  North  Dakota,  and  engaged  in  the  production,  manu- 
facture  or   distribution   of   any   commodity   in   general 
use,  that  shall  intentionally  for  the  purpose  of  destroy- 
ing the  business  of  a  competitor  in  any  locality,  dis- 
criminate   between    different    sections,    communities    or 
cities   of   this   state,   by   selling   such    commodity    at   a 
lower  rate  in  one  section,  community  or  city  than   is 
charged  for  said  commodity  by  said  party  in  another 
section,  community  or  city,  after  making  due  allowance 
for  the  difference,  if  any,  in  the  grade  or  quality,  and 
in  the  actual  cost  of  transportation  from  the  point  of 
production,  if  a  raw  product,  or  from  the  point  of  manu- 
facture,   if   a    manufactured   product,   shall   be    deemed 
guilty  of  unfair   discrimination,  which  is  hereby   pro- 
hibited and  declared  to  be  unlawful. 

2.  Any  person,  firm,  company,  association  or  corpora- 
tion violating  any  of  the  provisions  of  the  preceding 
section,  and  any  officer,  agent  or  receiver  of  any  firm, 
company,  association  or  corporation,  or  any  member  of 
the  same  or  any  individual,  found  guilty  of  a  violation 
thereof,  shall  be  fined  not  less  than  five  hundred  dollars, 
nor  more  than  five  thousand  dollars,  or  be  imprisoned  in 
the  county  jail  not  to  exceed  one  year,  or  suffer  both 
penalties. 

3.  All  contracts  or  agreements  made  in  violation  of 
any  of  the  provisions  of  the  two  preceding  sections  shall 
be  void. 

4.  It  shall  be  the  duty  of  the  county  attorneys,  in  their 
counties,  and  the  attorney-general,  to  enforce  the  pro- 
visions of  the  preceding  sections  of  this  act  by  appropri- 
ate actions  in  courts  of  competent  jurisdiction. 

5.  If  complaint  shall  be  made  to  the  secretary  of  state 
that  any  corporation  authorized  to  do  business  in  this 
state  is  guilty  of  unfair  discrimination  within  the  terms 
of  this  act,  it  shall  be  the  duty  of  the  secretary  of  state 
to  refer  the  matter  to  the  attorney-general,  who  may,  if 
the  facts  justify  it  in  his  judgment,  institute  proceedings- 
in  the  courts  against  such  corporation. 


NORTH    DAKOTA.  249 

6.  If  any  corporation,  foreign  and  domestic,  authorized 
to  do  business  in  this  state,  is  found  guilty  of  unfair 
discrimination,  such  finding  shall  cause  a  forfeiture  of 
all  the  privileges  and  rights  conferred  by  the  laws  of  this 
state  upon  corporations  and  shall  bar  its  right  to  do  busi- 
ness in  this  state. 

7.  If  any  corporation,  having  been  found  guilty  of  a 
violation  of  any  of  the  provisions  of  this  act,  shall  con- 
tinue or  attempt  to  do  business  in  this  state,  it  shall  be 
the  duty  of  the  attorney-general  by  a  proper  action  in 
the  name  of  the  state  of  North  Dakota  to  enjoin  such 
corporation  from  transacting  all  business  of  every  kind 
and  character  in  the  state  of  North  Dakota. 

8.  Nothing  in  this  act  shall  be  construed  as  repealing 
any  other  act,  or  part  of  act,  but  the  remedies  herein  pro- 
vided shall  be  cumulative  to  all  other  remedies  provided 
by  law.     (L.  1907,  c.  260.) 

TRUSTS UNFAIR    COMPETITION. 

[Chapter  287,  acts  of  1913.] 

AN  ACT  To  amend  Sections  1,  2  and  4  of  Chapter  258  of  the  Ses^ 
sion  Laws  of  1907,  Relating  to  Trade  Discrimination  and  Unfair 
Competition. 

Be  it  Enacted  by  the  Legislative  Assembly  of  the  State  of 

North  Dakota: 

§  1.  AMENDMENT.]  That  Section  1  of  Chapter  258  of 
the  Session  Laws  of  1907,  be  amended  to  read  as  follows : 

§  1.  UNFAIR  COMPETITION.]  Any  person,  firm  or  cor- 
poration, foreign  or  domestic,  doing  business  in  the  state 
of  North  Dakota  and  engaged  in  the  production,  manu- 
facture, distribution,  purchase  or  selling  of  milk,  cream, 
butter  fat,  grain  or  any  commodity  in  general  use  that 
shall,  with  the  intention  of  creating  a  monopoly,  or  of 
destroying  the  business  of  a  competitor,  or  of  any  regular 
established  dealer,  or  to  prevent  competition  of  any  per- 
son  who  in  good  faith  intends  and  attempts  to  become 
such  a  dealer,  discriminate  between  different  sections, 
communities,  towns  or  cities,  or  portions  thereof,  in  this 
state,  by  purchasing  at  a  higher  or  selling  at  a  lower 
rate  or  price  in  one  section,  community,  town  or  city  or 
portion  thereof^  in  this  state,  than  is  paid  or  charged  by 
such  person,  firm  or  corporation  for  such  milk,  cream, 
butter  fat,  grain  or  commodity  in  general  use  in  another 


250  LAWS   ON   TEUSTS  AND   MONOPOLIES. 

section,  community,  town  or  city,  or  portion  thereof,  in 
this  state,  after  making  due  allowance  for  the  difference, 
if  any,  in  the  actual  cost  of  transportation  of  such  com- 
modities, shall  be  guilty  of  unfair  discrimination. 

§  2.  AMENDMENT.]  That  Section  2  of  Chapter  258  of 
the  Session  Laws  of  1907  be  amended  to  read  as  follows : 

§  2.  FORFEITURE  OF  CHARTER.]  If  complaint  shall  be 
made  to  the  attorney  general  that  any  person,  firm  or  cor- 
poration, is  guilty  of  unfair  discrimination,  as  defined  by 
this  Act,  he  shall  investigate  the  matter  complained  of, 
and  for  that  purpose  may  subpoena  witnesses,  administer 
oaths,  take  testimony  and  require  the  production  of 
books  or  other  documents  belonging  to  such  persons,  firm 
or  corporation,  and  if,  in  his  opinion,  sufficient  grounds 
exist  therefor,  he  shall  prosecute  an  action  in  the  name  of 
the  state  of  North  Dakota,  in  the  proper  court,  to  annul 
the  charter  or  revoke  the  permit  or  license  of  such  per- 
son, firm  or  corporation^  as  the  case  may  be. 

§  3.  AMENDMENT.]  That  Section  4  of  Chapter  258  of 
the  Session  Laws  of  1907  be  amended  to  read  as  follows : 

§  4.  PENALTY.]  Any  person,  firm  or  corporation  con- 
victed of  unfair  discrimination  shall  be  fined  in  any  sum 
not  less  than  two  hundred  dollars  nor  more  than  three 
thousand  dollars. 

§  5.  EMERGENCY.]  An  emergency  is  hereby  declared  to 
exist,  and  this  Act  shall  take  effect  immediately  upon  its 
passage  and  approval. 

Approved  March  12,  1913. 


OHIO. 

DEFINITIONS   OF   TERMS. 

The  word  "  person "  or  "  persons "  as  used  in  this 
chapter  includes  corporations,  partnerships  and  associa- 
tions existing  under  or  authorized  by  any  state  or  terri- 
tory of  the  United  States,  or  a  foreign  country.  (G.  C. 
Sec.  6390.) 

TRUSTS  DEFINED. 

A  trust  is  a  combination  of  capital,  skill  or  acts  by  two 
or  more  persons,  firms,  partnerships,  corporations  or  as- 
sociations of  persons,  for  any  or  all  of  the  following  pur- 
poses : 

1.  To  create  or  carry  out  restrictions  in  trade  or  com- 
merce. 

2.  To  limit  or  reduce  the  production  or  increase,  or 
reduce  the  price  of  merchandise  or  a  commodity. 

3.  To  prevent  competition  in  manufacturing,  making, 
transportation,  sale  or  purchase  of  merchandise,  produce 
or  a  commodity. 

4.  To  fix  at  a  standard  or  figure,  whereby  its  price  to 
the  public  or  consumer  is  in  any  manner  controlled  or 
established,   an   article   or   commodity   of  merchandise, 
produce  or  commerce  intended  for  sale,  barter,  use  or 
consumption  in  this  state. 

5.  To  make,  enter  into,  execute  or  carry  out  contracts, 
obligations  or  agreements  of  any  kind  or  description,  by 
which  they  bind  or  have  bound  themselves  not  to  sell, 
dispose  of  or  transport  an  article  or  commodity,  or  an 
article  of  trade,  use,  merchandise,  commerce  or  consump- 
tion below  a  common  standard  figure  or  fixed  value,  or 
by  which  they  agree  in  any  manner  to  keep  the  price  of 
such  article,  commodity  or  transportation  at  a  fixed  or 
graduated  figure,  or  by  which  they  shall  in  any  manner 
establish  or  settle  the  price  of  an  article,  commodity  or 
transportation  between  them  or  themselves  and  others, 
so  as  directly  or  indirectly  to  preclude  a  free  and  unre- 

251 


252  LAWS    ON    TRUSTS   AND   MONOPOLIES. 

stricted  competition  among  themselves,  purchasers  or 
consumers  in  the  sale  or  transportation  of  such  article 
or  commodity,  or  by  which  they  agree  to  pool,  combine 
or  directly  or  indirectly  unite  any  interests  which  they 
have  connected  with  the  sale  or  transportation  of  such 
article  or  commodity,  that  its  price  might  in  any  manner 
be  affected.  Such  trust  as  is  defined  herein  is  unlawful, 
against  public  policy  and  void.  (G.  C..  Sec.  6391.) 

OWNING     TRUST     CERTIFICATE     OR     ENTERING     INTO     COMBI- 
NATION. 

It  shall  not  be  lawful  for  a  person,  partnership,  as- 
sociation or  corporation,  or  an  agent  thereof,  to  issue  or 
to  own  trust  certificates,  or  for  a  person,  partnership, 
association  or  corporation,  or  an  agent,  officer  or  em- 
ploye thereof,  or  a  director  or  stockholder  of  a  corpora- 
tion, to  enter  into  a  combination,  contract*  or  agreement 
with  any  person  or  persons,  corporation  or  corporations, 
or  a  stockholder  or  director  thereof,  the  purpose  and 
effect  of  which  is  to  place  the  management  or  control  of 
such  combination  or  combinations,  or  the  manufactured 
product  thereof,  in  the  hands  of  a  trustee  or  trustees  with 
the  intent  to  limit  or  fix  the  price  or  lessen  the  produc- 
tion and  sale  of  an  article  of  commerce,  use  or  consump- 
tion, or  to  prevent,  restrict  or  diminish  the  manufacture 
or  output  of  such  article.  (G.  C.,  Sec.  6392.) 

ILLEGAL,  CONTRACT. 

A  contract  or  agreement  in  violation  of  any  provision 
of  this  chapter  is  void  and  not  enforceable  either  in  law 
or  equity.  (G.  C.,  Sec.  6393.) 

PROHIBITION   AGAINST  FOREIGN   CORPORATIONS: 

A  foreign  corporation  or  foreign  association  exercis- 
ing any  the  powers,  franchises  or  functions  of  a  corpo- 
ration in  this  state,  violating  any  provision  of  this  chap- 
ter shall  not  have  the  right  of,  and  be  prohibited  from, 
doing  any  business  in  this  state.  The  attorney-general 
shall  enforce  this  provision  by  proceedings  in  quo  war- 
ranto  in  the  supreme  court,  or  the  court  of  appeals  of  the 
county  in  which  the  defendant  resides  or  does  business,  or 
by  injunction  or  otherwise.  The  secretary  of  state  shall 


OHIO.  253 

revoke  the  certificate  of  such  corporation  or  association 
theretofore  authorized  by  him  to  do  business  in  this  state. 
(G.  C..  Sec.  6394  as  amended  by  act  of  May  8,  1913.) 

CIVIL  PENALTY. 

A  person,  firm,  partnership,  corporation  or  association 
violating  any  provision  of  this  charter  shall  forfeit  and 
pay  the  sum  of  fifty  dollars  for  each  day  that  such  vio- 
lation is  committed  or  continued  after  due  notice  given 
by  the  attorney-general  or  a  prosecuting  attorney.  Such 
sum  may  be  recovered  in  the  name  of  the  state  in  any 
county  where  the  offense  is  committed  or  where  any  of 
the  offenders  reside;  and  the  attorney-general,  or  the 
prosecuting  attorney  of  any  county  upon  the  order  of 
the  attorney-general,  shall  prosecute  for  the  recovery 
thereof.  When  such  action  is  prosecuted  by  the  attorney- 
general  against  a  corporation  or  association,  he  may  begin 
it  in  the  circuit  court  of  the  county  in  which  the  defend- 
ant resides  or  does  business.  (G.  C.,  Sec.  6395.) 

CRIMINAL  PENALTY. 

A  violation  of  any  or  all  of  the  provisions  of  this  chap- 
ter is  a  conspiracy  against  trade,  and  a  person  engaged 
in  such  conspiracy  or  taking  part  therein,  or  aiding  or 
advising  in  its  commission,  or,  as  principal,  manager, 
director,  agent,  servant  or  employer,  or  in  any  other  ca- 
pacity, knowingly  carrying  out  any  of  the  stipulations, 
purposes,  prices  or  rates,  or  furnishing  any  information 
to  assist  in  carrying  out  such  purposes,  or  orders  thereun- 
der, or  in  pursuance  thereof,  or  in  any  manner  violating 
a  provision  of  this  chapter,  shall  be  fined  not  less  than 
fifty  dollars  nor  more  than  five  thousand  dollars  or  im- 
prisoned not  less  than  six  months  nor  more  than  one  year, 
or  both.  Provided,  however,  that  when  the  violatijn  of 
the  provisions  of  this  chapter  consists  of  a  combination 
to  control  the  price  or  supply,  or  to  prevent  competition 
in  the  sale  of  bread,  butter,  eggs,  flour,  meat  or  vegetables 
or  any  one  of  said  articles,  the  persdn  or  persons  thus  en- 
gaged shall  upon  conviction  thereof  be  fined  in  any  sun* 
not  less  than  five  hundred  dollars  and  be  imprisoned  in 
the  penitentiary  not  less  than  one  nor  more  than  five 
years.  Each  day's  violation  of  any  of  the  provisions  of 
this  chapter  shall  constitute  a  separate  offense.  (G.  C. 
6396  as  amended  by  act  May  3,  1913.) 


254  LAWS   ON   TEUSTS  AND  MONOPOLIES. 

LIABILITY   FOR   DAMAGES. 

In  addition  to  the  civil  and  criminal  penalties  pro- 
vided in  this  chapter,  the  person  injured  in  his  business 
or  property  by  another  person,  or  by  a  corporation,  as- 
sociation or  partnership,  by  reason  of  anything  forbidden 
or  declared  to  be  unlawful  in  this  chapter,  may  sue  there- 
for in  any  court  having  jurisdiction  thereof  in  the 
county  where  the  defendant  or  his  agent  resides  or  is 
found,  or  where  any  service  may  be  obtained,  without 
respect  to  the  amount  in  controversy,  and  recover  two- 
fold the  damages  sustained  by  him  and  his  costs  of  suit. 
When  it  appears  to  the  court,  before  which  a  proceeding 
under  this  chapter  is  pending,  that  the  ends  of  justice  re- 
quire other  parties  to  be  brought  before  such  court,  the 
court  may  cause  them  to  be  made  parties  defendant  and 
summoned  whether  they  reside  in  the  county  where  such 
action  is  pending,  or  not.  (G.  C.,  Sec.  6397.) 

WHAT   INDICTMENT   SHALL    CONTAIN. 

In  an  indictment  for  an  offense  provided  for  in  this 
chapter,  it  is  sufficient  to  state  the  purpose  or  effects  of 
the  trust  or  combination,  and  that  the  accused  is  a  mem- 
ber thereof,  or  acted  with  or  in  pursuance  of  it  or  aided 
or  assisted  in  carrying  out  its  purposes,  without  giving 
its  name  or  description,  or  how,  when  and  where  it  was 
created.  (G.  C.,  Sec.  6398.) 

EVIDENCE. 

In  prosecutions  under  this  chapter,  it  shall  be  suf- 
ficient to  prove  that  a  trust  or  combination  as  defined 
herein  exists,  and  that  the  defendant  belonged  to  it,  or 
acted  for  or  in  connection  with  it,  without  proving  all 
the  members  belonging  to  it,  or  proving  or  producing  an 
article  of  agreement,  or  a  written  instrument  on  which  it 
may  have  been  based ;  or  that  it  was  evidenced  by  a  writ- 
ten instrument.  The  character  of  the  trust  or  combina- 
tion alleged  may  be  established  by  proof  o,f  its  general 
reputation  as  such.  (G.  C.,  Sec.  6399.) 

DUTY    OF    ATTORNEY-GENERAL   AND    PROSECUTING    ATTORNEY. 

The  several  courts  of  common  pleas  in  the  State  are 
hereby  invested  the  jurisdiction  to  restrain  and  enjoin 
violators  of  this  chapter.  For  a  violation  of  any  pro- 


OHIO.  255 

vision  of  this  chapter  by  a  corporation  or  association  men- 
tioned herein,  the  attorney  general,  or  the  prosecuting 
attorney  of  the  proper  county,  shall  institute  proper  pro- 
ceeding in  a  court  of  competent  jurisdiction  in  any  county 
in  the  state  where  such  corporation  or  association  exists, 
does  business  or  has  a  domicile.  When  such  suit  is  insti- 
tuted by  the  attorney  general  in  quo  warranto,  he  may 
begin  the  same  in  the  supreme  court  of  the  state  or  the 
court  of  appeals  of  Franklin  county.  When  such  suit  is 
instituted  by  the  attorney  general  to  restrain  and  enjoin 
a  violation  of  any  provision  of  this  chapter,  he  may  begin 
the  same  in  the  court  of  common  pleas  of  Franklin 
county.  Such  proceeding  to  restrain  and  enjoin  such  vio- 
lation, or  violations,  shall  be  by  way  of  petition  setting 
forth  the  case,  and  praying  that  such  violation  shall  be 
enjoined  or  otherwise  prohibited. 

Upon  the  filing  of  such  petition,  and  before  final  decree* 
the  court  may  at  any  time  make  such  temporary  restrain- 
ing order  or  prohibition  as  shall  be  deemed  just  in  the 
premises.  In  any  action  or  proceeding  in  quo  warranto 
by  the  attorney  general  or  a  prosecuting  attorney  against 
the  corporation  the  court  in  wyhich  such  action  or  proceed- 
ing is  pending  may,  ancillary  to  such  action  or  proceed- 
ing, restrain  or  enjoin  the  corporation  and  its  officers  and 
agents  from  continuing  or  committing  during  the  pend- 
ency of  the  action  the  alleged  act  or  acts  by  reason  which 
the  action  is  brought.  When,  in  a  proceeding  quo  vrar- 
ranto  by  the  attorney  general  or  any  prosecuting  attor- 
ney, any  corporation  incorporated  under  the  laws  of  this 
state  is,  on  final  hearing,  found  guilty  of  violating  any 
of  the  provisions  of  this  act,  the  court  may  declare  a  for- 
feiture of  all  its  rights,  privileges,  and  franchises  to  the 
state  and  may  order  the  incorporation  dissolved  and  ap- 
point a  trustee  or  trustees  to  wind  up  its  affairs,  as  is 
provided  in  other  cases  of  quo  warranto.  (0.  C.  Sec* 
6400  as  amended  act  May  8,  1913.) 

WITNESS  NOT  EXCUSED  FROM  TESTIFYING. 

If  a  court  of  record  or  in  vacation  a  judge  thereof,  in 
wrhich  is  pending  a  civil,  criminal  or  other  action  or  pro- 
ceeding brought  or  prosecuted  by  the  attorney-general  or 
a  prosecuting  attorney  for  the  violation  of  any  provision 
of  this  chapter,  or  an  action  or  proceeding  for  a  violation 
of  a  law.  common  or  statute,  against  a  conspiracy  or  com 


256  LAWS    OX    TRUSTS   AXD    MONOPOLIES. 

bination  in  restraint  of  trade,  so  orders,  no  person  shall 
be  excused  from  attending,  testifying  or  producing  books, 
papers,  schedules,  contracts,  agreements  or  other  docu- 
ments in  obedience  to  the  subpoena  or  order  of  such  coud 
or  a  commissioner,  referee  or  master  appointed  by  such 
court  to  take  testimony,  or  a  notary  public  or  other  per- 
son authorized  by  the  laws  of  this  state  to  take  deposi- 
tions, when  the  order  made  by  such  court  or  judge  in- 
cludes a  witness  whose  deposition  is  being  taken  before 
such  notary  public  or  other  officer,  for  the  reason  that 
the  testimony  or  evidence  required  of  him  may  tend  to 
criminate  him  or  subject  him  to  a  penalty ;  but  no  person 
shall  be  prosecuted  or  subject  to  a  penalty  for  or  on  ac- 
count of  a  transaction,  matter  or  thing  concerning  whioli 
he  may  so  testify  or  produce  evidence,  documentary  or 
otherwise,  before  such  court,  person  or  officer.  (G.  C., 
Sec.  6401.) 

CUMULATIVE   PROVISIONS. 

The  provisions  of  this  chapter  shall  be  cumulative  of 
each  other  and  of  all  other  laws  in  any  manner  affecting 
them.  G.  C.,  Sec.  6402.) 

See  Nos.  71  and  74. 

COURT  DECISIONS. 

The  Central  Ohio  Salt  Co.  v.  Stephen  H.  Guthrie, 
35  O.  St.,  666. 

Emery  et  al.  v.  The  Ohio  Candle  Co.,  47  O.  St.,  320. 

State  ex  rel.  v.  Standard  Oil  Co.,  49  O.  St.,  137. 

United  States  Telephone  Co.  v.  Telephone  Co.,  32 
O.  C.  C.  18;13N.  S.,  337. 

Gould  v.  Railway,  21  Dec.,  729. 

Freeman  v.  Miller,  21  Dec.,  766;  9  N.  S.,  26. 

Corn  Products  Refining  Co.  v.  Roser-Runkle  Co.,  22 
Bee.,  663;  10  N.  S.,  596. 

Mannihgton  v.  Railway,  16  O.  F.  D.,  552 ;  8  O.  L.  R.,  451. 

State  v.  Jacobs,  7  Ohio  K  P.,  261. 

Kevil  v.  Standard  Oil  Co.,  8  Ohio  N.  P.,  311. 

Gage  v.  State,  24  Ohio  C.  C.,  724. 


OKLAHOMA. 

CON  STITUTION. 
POWER  TO  HOLD  STOCKS  AND  BONDS  OF  OTHER  CORPORATIONS. 

ART.  IX,  SEC.  41.  No  corporation  chartered  or  licensed 
to  do  business  in  this  state  shall  own,  hold  or  control,  in 
any  manner  whatever,  the  stock  of  any  competitive  cor- 
poration or  corporations  engaged  in  the  same  kind  of 
business,  in  or  out  of  the  state,  except  such  stock  as  may  be 
pledged  in  good  faith  to  secure  bona-fide  indebtedness  ac- 
quired upon  foreclosure,  execution  sale  or  otherwise  for 
the  satisfaction  of  debt.  In  all  cases  where  any  corpora- 
tion acquires  stock  in  any  other  corporation,  as  herein 
provided,  it  shall  be  required  to  dispose  of  the  same 
within  twelve  months  from  the  date  of  acquisition;  and 
during  the  period  of  its  ownership  of  such  stock  it  shall 
have  no  right  to  participate  in  the  control  of  such  corpo- 
ration, except  when  permitted  by  order  of  the  corporation 
commission.  No  trust  company,  or  bank  or  banking  com- 
pany, shall  own,  hold  or  control,  in  any  manner  what- 
ever, the  stock  of  any  other  trust  company,  or  bank  or 
banking  company,  except  such  stock  as  may  be  pledged  in 
good  faith  to  secure  bona  fide  indebtedness,  acquired 
upon  foreclosure,  execution  sale  or  otherwise  for  the  sat- 
isfaction of  debt;  and  such  stock  shall  be  disposed  of  in 
the  time  and  manner  hereinbefore  provided. 

ART.  II,  SEC.  32.  Perpetuities  and  monopolies  are  con- 
trary to  the  genius  of  a  free  government,  and  shall  never 
be  allowed,  nor  shall  the  law  of  primogeniture  or  entail- 
ments  ever  be  in  force  in  this  state. 

ART.  V,  SEC.  44.  The  legislature  shall  define  what  is 
an  unlawful  combination,  monopoly,  trust,  act  or  agree- 
ment, in  restraint  of  trade,  and  enact  laws  to  punish  per- 
sons engaged  in  any  unlawful  combination,  monopoly, 
trust,  act  or  agreement  in  restraint  of  trade,  or  composing 
any  such  monopoly,  trust  or  combination. 

16491—13 17  257 


258  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

ART.  IX,  SEC.  45.  Until  otherwise  provided  by  law,  no 
person,  firm,  association  or  corporation  engaged  in  the 
production,  manufacture,  distribution  or  sale  of  any  com- 
modity of  general  use,  shall,  for  the  purpose  of  creating 
a  monopoly  or  destroying  competition  in  trade,  discrimi- 
nate between  different  persons,  associations  or  corpora- 
tions, or  different  sections,  communities  or  cities  of  the 
state,  by  selling  such  commodity  at  a  lower  rate  in  one 
section,  community  or  city  than  in  another,  after  making 
due  allowance  for  the  difference,  if  any,  in  the  grade, 
quantity  or  quality,  and  in  the  actual  cost  of  transporta- 
tion from  the  point  of  production  or  manufacture. 

STATUTES. 

That  every  act,  agreement,  contract  or  combination  in 
the  form  of  trust  or  otherwise,  or  conspiracy  in  restraint 
of  trade  or  commerce,  within  this  state,  which  is  against 
public  policy,  is  hereby  declared  to  be  illegal.  (Act  of 
June  10,  1908,  L.  1908,  p.  750,  Sec.  1.) 

If  the  attorney  general  shall  have  sufficient  evidence 
that  the  provisions  of  the  constitution,  or  any  law  pur- 
suant thereto,  against  the  establishment  or  maintenance 
of  any  trust,  monopoly  or  unreasonable  restraint  of  trade, 
or  any  violation  of  this  act,  or  any  of  its  provisions,  are 
about  to  be  or  have  been  violated,  by  any  person,  firm, 
corporation  or  association  engaged  in  any  quasi-public 
business,  or  having  a  virtual  monopoly  of  any  commodity 
or  business  with  the  intention  or  effect  of  destroying  com- 
petition or  restraining  trade  contrary  to  the  provisions 
of  this  act,  he  may  file  information  in  the  supreme  court, 
and  by  proceeding  as  against  nuisance,  enjoin  and  re- 
strain said  combination  or  arrangement,  or  any  of  its 
members  or  by  proceeding  analogous  to  libel,  cause  any 
or  all  the  personal  property  of  said  offending  person,  finr 
or  corporation  or  association  used  or  to  be  used  in  whole 
or  in  part  in  any  transaction  which  in  effect  or  intent 
hinders  competition,  or  unreasonable  restriction  of  trade, 
to  be  forfeited  to  the  state  in  the  discretion  of  the  court, 
together  with  all  the  commodities  in  the  possession  or 
control  of  such  offending  corporation,  person,  firm  or  as- 
sociation, used  or  intended  for  such  use  in  violation  of 
the  constitution  or  laws  pursuant  thereto,  or  this  act ;  and 
may  take  both  said  proceedings. 


OKLAHOMA.  259 

Upon  the  filing  of  such  petition,  or  at  any  time  there- 
after, the  attorney  general  may  apply  for  an  in  junction 
pending  the  action  and  the  appointment  of  a  receiver  for 
any  or  all  of  the  property  of  such  person,  firm,  corpora- 
tion or  association.  Upon  such  application,  the  court, 
or  a  majority  of  the  judges  thereof,  if  in  vacation,  is  au- 
thorized to  issue  a  restraining  order  pending  the  action 
enjoining  the  defendant  or  defendants  from  in  any  way 
changing  the  business,  records,  books,  instruments,  01 
property  to  them  belonging,  or  by  them  used,  directly  or 
indirectly,  and  issue  a  rule  to  show  cause  why  a  receiver 
should  not  be  appointed,  and  after  notice  of  such  rule 
shall  have  been  served  on  the  defendant  or  defendants, 
or  any  managing  agent  of  said  defendant  or  defendants 
within  this  state,  and  an  opportunity  to  be  heard  having 
been  given,  said  receiver  may  be  appointed  in  the  discre- 
tion of  the  court  to  take  charge  of  the  property  of  the 
defendant  or  defendants  so  notified.  Such  receiver  shall 
preserve  said  property  free  from  any  illegal  arrange- 
ment until  determination  of  the  litigation,  and  thereafter 
to  dispose  of  the  same  according  to  law,  or  any  other 
remedy  may  be  applied,  or  both,  to  more  effectually  pro- 
duce and  consummate  such  preservation  or  forfeiture,  or 
both;  and  said  court  shall  be  authorized  by  appointed 
master  in  chancery,  or  otherwise  in  his  discretion,  to 
receive  evidence  in  any  county  in  the  state  according  to 
the  rules  of  civil  procedure,  and  make  the  findings  of  fact 
thereon  for  said  court ;  and  said  master  in  chancery  shall 
have  compulsory  process  for  witnesses,  and  the  produc- 
tion of  books  and  papers  from  any  part  of  the  state,  and 
for  this  purpose  the  executive  officers  of  the  said  court,  or 
any  of  the  district  courts  of  the  state,  shall  be  empowered 
to  serve  mesne  and  final  process ;  and  the  services  of  said 
master  in  chancery,  or  other  person  appointed  by  the 
court  shall  be  paid  for  as  costs  by  the  losing  parties  in 
said  cause,  in  an  amount  equal  to  the  fees  that  would 
have  been  earned  therein  if  a  notary  public  had  received 
said  testimony,  together  with  a  sum  of  not  exceeding  ten 
dollars  ($10)  per  day,  in  the  discretion  of  the  court,  and 
the  actual  expenses  for  each  day  that  testimony  is  actually 
received ;  and  testimony  and  evidence  in  such  action  may 
also  be  taken  by  deposition  anywhere  within  or  without 
this  state,  as  in  civil  actions  in  the  district  court. 

In  the  event  of  a  violation  of  any  order  of  the  court 
therein,  and  a  proceeding  grows  out  of  the  same  in  the 


260  LAWS  ON   TKUSTS  AND  MONOPOLIES. 

nature  of  contempt,  if  the  defendant  demand  a  trial  by 
jury,  the  court  may  transfer  the  said  contempt  proceed- 
ings to  any  district  court  of  the  state  for  trial  by  jury, 
and  a  verdict,  but  the  judgment,  if  any,  shall  be  rendered 
by  said  supreme  court,  and  sentence,  if  proper,  passed  by 
it.  This  proceeding  shall  be  in  addition  to,  and  cumula- 
tive as  to  any  other  provisions  of  the  law  applicable  to 
the  same  situation;  provided,  that  the  appointment  of 
such  receiver  may  be  stayed,  or  after  appointment  and 
possession  taken  the  receiver  shall  be  discharged,  upon 
the  defendant  giving  bond  in  an  amount  and  with  sure- 
ties to  be  approved  by  said  court,  or  a  justice  thereof, 
conditioned  for  the  payment  of  all  damages  and  costs 
which  may  be  assessed  against  the  defendant  in  said 
proceeding  in  favor  of  the  state,  or  any  officer,  or  person. 
(Id.,  Sec.  2.) 

Any  person,  firm,  corporation  or  association,  who  shall 
be  injured  in  his  or  their  business  or  property,  by  any 
other  person,  firm,  corporation  or  association,  by  reason 
of  anything  forbidden,  or  declared  to  be  unlawful  by 
this  act,  may  sue  therefor  in  the  courts  of  this  state,  and 
shall  receive  three- fold  the  damages  by  him  or  them  sus- 
tained, and  the  costs  of  suit,  and  a  reasonable  attorney's 
fee,  to  be  fixed  by  the  court.  (Id.,  Sec.  3.) 

Every  foreign  corporation,  as  well  as  any  foreign  as- 
sociation, exercising  any  of  the  powers,  franchises  or 
functions  of  a  corporation  in  this  state,  violating  any  of 
the  provisions  of  this  act  is  hereby  denied  the  right  and 
prohibited  from  doing  business  in  this  state,  and  the  sec- 
retary of  state,  upon  the  order  of  the  corporation  com- 
mission, or  any  competent  court,  made  after  due  notice 
and  in  due  course  of  law  shall  revoke  the  license  of  any 
such  corporation  or  association  heretofore  authorized  to 
do  business  in  this  state.  (Id.,  Sec.  4.) 

It  shall  be  unlawful  for  any  person,  firm,  corporation 
or  association,  engaged  in  the  production,  manufacture, 
distribution  or  sale  of  any  commodity  of  general  use,  or 
rendering  any  service  to  the  public  to  discriminate  be- 
tween different  persons,  firms,  associations  or  corpora- 
tions, or  different  sections,  communities  or  cities  of  the 
state  by  selling  such  commodity  or  rendering  such  serv- 
ice at  a  lower  rate  in  one  section,  community  or  city  than 
another,  or  at  the  same  rate  or  price  at  a  point  away  from 
that  of  production  or  manufacture  as  at  the  place  of  pro- 
duction or  manufacture,  after  making  due  allowance  for 


OKLAHOMA.  261 

the  difference,  if  any,  in  the  grade,  quantity  or  quality, 
and  in  the  actual  cost  of  transportation  from  the  point 
of  production  or  manufacture,  if  the  effect  or  intent 
thereof  is  to  establish,  or  maintain,  a  virtual  monopoly 
hindering  competition,  or  restriction  of  trade.  (Id., 
Sec.  5.) 

Any  person  who  shall  violate  any  of  the  provisions 
of  this  act,  or  take  any  part  or  aid  or  advise  in  the  viola- 
tion of  any  such  provisions,  or  who  shall,  as  officer,  man- 
ager, director,  agent,  servant  or  employee,  of  any  firm, 
corporation  or  association,  knowingly  carry  out  any  of 
the  stipulations,  purposes,  prices,  rates,  or  furnish  any 
information,  knowingly,  to  assist  in  carrying  out  such 
purposes,  or  in  pursuance  thereof,  in  violation  of  said 
provisions,  shall  be  punished  by  a  fine  of  not  less  than  $50 
nor  more  than  $10,000,  and  by  imprisonment  not  less  than 
ten  days  nor  more  than  ten  years,  at  the  discretion  of  the 
court;  and  each  day's  violation  of  the  provisions,  or  any 
of  them,  of  this  act,  shall  constitute  a  separate  offense. 
And  any  sum  wrhich  might  be  assessed,  as  a  fine  by  way 
of  punishment  for  a  crime  as  in  this  act  provided  may  be 
recovered  by  the  state  as  a  penalty  in  civil  action,  in  addi- 
tion to,  or  irrespective  of,  the  assessment  and  assessability 
of  said  fine,  either  before,  or  later,  or  simultaneously 
with  the  pendency  of  said  criminal  action.  (Id.,  Sec.  6.) 

In  any  indictment  or  information  for  any  offense 
named  in  this  act  it  is  sufficient  to  state  the  purpose,  or 
facts  of  the  trust,  monopoly,  unlawful  combination  in 
restraint  of  trade  or  commerce,  and  that  the  accused  is  a 
member  of,  acted  with  or  in  pursuance  of  it,  or  aided  or 
assisted  in  carrying  out  its  purpose,  without  giving  its 
name,  or  description,  or  stating  how,  when  or  where  it 
was  created.  (Id.,  Sec.  7.) 

It  shall  be  the  duty  of  the  court  before  whom  any  pro- 
ceeding under  this  act  may  be  brought,  upon  the  applica- 
tion of  the  attorney  general,  to  cause  to  be  issued  by  the 
clerk  of  said  court  subpoenas  for  such  witnesses  as  may  be 
named  in  the  application  and  cause  the  same  to  be  served 
by  the  sheriff  of  the  county  where  or  whither  such  sub- 
poena is  issued;  and  such  witnesses  shall  be  compelled  to 
appear  before  such  court  or  judge  at  the  time  and  place 
set  forth  in  the  subpoena,  and  shall  be  compelled  to  testify 
as  to  any  knowledge  they  may  have  of  the  violations  of 
any  of  the  provisions  of  this  act;  and  any  witness  who 
fails  or  refuses  to  attend  and  testify  shall  be  punished 


262  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

as  for  contempt,  as  provided  by  law.  Any  person  so  sub- 
poenaed and  examined  shall  not  be  liable  to  criminal  pros- 
ecution for  any  violation  of  this  act  about  which  he  may 
testify;  neither  shall  the  evidence  of  any  such  witness  be 
used  against  him  in  any  criminal  proceeding.  The  evi- 
dence of  all  the  witnesses  shall,  at  the  option  of  the  at- 
torney general,  be  taken  down,  and  shall  be  transcribed 
and  placed  in  the  hands  of  the  attorney  general  and  he 
shall  be  authorized  to  prosecute  such  violator  or  violators 
of  this  act  as  the  testimony  so  taken  shall  disclose.  Wit- 
nesses subpoenaed  as  provided  in  this  act  shall  be  com- 
pelled to  attend  from  any  county  in  the  state.  (Id., 
Sec.  8.) 

It  shall  be  the  duty  of  the  county  attorneys  of  the  sev- 
eral counties  of  this  state,  as  well  as  the  attorney  general 
of  the  state,  to  prosecute  all  actions  to  enforce  the  crimi- 
nal provisions  of  this  act.  (Id,,  Sec.  9.) 

It  shall  be  unlawful  for  any  person,  partnership,  firm, 
association  or  corporation  or  joint  stock  company,  or 
agent  thereof,  to  issue  or  to  own  trust  certificates,  or 
for  any  person,  firm,  partnership,  association,  joint  stock 
company  or  corporation  agent,  officer,  employee  or  the 
directors  or  stockholders  of  any  corporation,  association 
or  joint  stock  company,  to  enter  into  any  combination, 
contract  or  agreement  with  any  person  or  persons,  corpo- 
ration or  associations,  firm  or  firms,  partnership  or  part- 
nerships, or  with  any  stockholder,  director  or  officer, 
agent  or  employee  of  the  same,  the  purpose  or  effect  of 
which  combination,  contract  or  agreement  shall  be  to 
place  the  management  or  control  of  such  combination  or 
combinations,  or  the  conduct  or  operation  of  the  same, 
or  the  output  of  manufactured  product  thereof,  or  the 
marketing  of  the  same  in  the  hands  of  any  trust  or  trus- 
tees, holding  corporation  or  association,  firm  or  com- 
mittee, with  the  intent  or  effect  to  limit  or  fix  the  price 
or  lessen  the  production  or  sale  of  any  product  or  article 
of  commerce  or  the  use  or  consumption  of  the  same,  or 
to  prevent,  restrict,  limit  or  diminish  the  manufacture 
or  output  of  any  such  article  of  commerce,  use  or  con- 
sumption, and  every  person,  firm,  partnership,  associa- 
tion, joint  stock  company  or  corporation,  or  any  agent, 
employee,  officer,  or  director  of  the  same  that  shall  enter 
into  such  combination,  contract,  management  or  agree- 
ment for  the  purpose  aforesaid,  shall  be  deemed  and  ad- 
judged guilty  of  conspiracy  in  restraint  of  trade,  and 


OKLAHOMA.  263 

punished  as  provided  for  in  section  6  of  this  act,  in  so 
far  as  applicable ;  provided,  this  section  shall  not  be  con- 
strued to  extend  beyond  the  scope  and  meaning  of  sec- 
tion 1  of  this  act.  (Id.,  Sec.  10.) 

Every  corporation  who  shall  own,  hold  or  control  in 
any  manner  whatever,  the  stock  of  any  competitive  cor- 
poration or  corporations  engaged  in  the  same  kind  of 
business  in  or  out  of  the  state,  in  violation  of  the  Consti- 
tution and  laws  of  this  state,  shall  forfeit  its  charter  or 
license  to  do  business  in  this  state,  and  shall  be  subject 
to  a  penalty  of  not  less  than  one  thousand  dollars 
($1,000.00)  nor  more  than  ten  thousand  dollars 
($10,000.00),  to  be  recovered  at  the  suit  of  the  state,  in 
any  court  of  competent  jurisdiction.  (Id.,  Sec.  11.) 

Whenever  any  corporation  created  under  the  laws  of 
this  state,  or  any  foreign  corporation  authorized  to  do 
business  in  this  state,  shall  violate  any  law  of  this  st.fte, 
for  the  violation  of  which  fines,  penalties  or  forfeitures 
are  provided,  all  property  of  such  corporation  within 
this  state  at  the  time  of  such  violation,  or  which  may 
hereafter  come  within  the  state,  shall,  by  reason  of  such 
violation,  become  liable  for  such  fine  or  penalties,  and 
for  all  costs  of  suit,  and  of  collection.  The  state  of  Okla- 
homa shall  have  a  lien  on  all  such  property  from  the  date 
that  the  suit  shall  be  instituted  by  the  attorney  general 
in  any  court  of  competent  jurisdiction  within  this  state, 
for  the  purpose  of  forfeiting  the  charter  or  canceling  +he 
permit  of  such  corporation,  or  for  the  recovery  of  such 
fines  or  penalties.  The  institution  of  such  suit  for  the 
recovery  of  such  fines,  penalties  or  forfeitures  shall  con- 
stitute notice  of  such  lien.  (Id.,  Sec.  12.) 

Whenever  any  business,  by  reason  of  its  nature,  ex- 
tent or  the  existence  of  a  virtual  monopoly  therein,  is 
such  that  the  public  must  use  the  same  or  its  services,  or 
the  consideration  by  it  given  or  taken  or  offered,  or  the 
commodities  bought  or  sold  therein  or  offered  or  taken 
by  purchase  or  sale  in  such  a  manner  as  to  make  it  of 
public  consequence,  or  to  affect  the  community  at  large 
as  to  supply,  demand  or  price,  or  rate  thereof,  or  said 
business  is  conducted  in  violation  of  the  first  section  of 
this  act,  said  business  is  a  public  business,  and  subject 
to  be  controlled  by  the  state,  by  the  corporation  commis- 
sion, or  by  an  action  in  any  district  court  of  the  state,  as 
to  all  of  its  practices,  prices,  rates  and  charges.  And  it 
is  hereby  declared  to  be  the  duty  of  any  person,  firm  or 


264  LAWS  ON   TKUSTS  AND  MONOPOLIES. 

corporation  engaged  in  any  public  business  to  render  its 
services  and  offer  its  commodities,  or  either,  upon  reason- 
able terms,  without  discrimination  and  adequately  to  the 
needs  of  the  public,  considering  the  facilities  of  said  busi- 
ness. (Id.,  Sec.  13.) 

In  all  prosecutions  or  proceedings  under  this  act  it 
shall  be  sufficient  to  prove  that  a  trust,  monopoly,  com- 
bination in  restraint  of  trade  or  commerce,  existed  with- 
out the  period  not  barred  by  the  statute  of  limitations, 
and  was  continued  in  any  form  into  and  during  any  por- 
tion of  the  period  not  so  barred,  and  that  defendant  be- 
longed to  it,  or  acted  for  or  in  connection  with  it,  with- 
out proving  all  the  members  belonging  to  it,  or  proving 
or  producing  any  article  or  agreement,  or  any  written 
instrument  on  which  it  may  have  been  based,  or  that  it 
was  evidenced  by  any  written  instrument  at  all.  (Id., 
Sec.  14.) 

Any  violation  of  this  act  committed  before  its  passage, 
and  continued  in  any  illegal  form  after  its  passage,  is 
within  its  terms.  (Id.,  Sec.  15.) 

The  remedies  provided  for  by  this  act  are  applicable 
to  all  pending  actions.  (Id.,  Sec.  16.) 

Nothing  in  this  act  shall  abridge  or  alter  any  remedy 
or  remedies  now,  or  hereafter,  existing  either  at  common 
law  or  by  statute,  but  the  provisions  of  this  act  are  in 
addition  to  such  remedies.  (Id.,  Sec.  IT.) 

[Chapter  114.] 

MONOPOLIES UNFAIR     COMPETITION     AND     DISCRIMINATION. 

AN  ACT  To  define  and  prohibit  unfair  competition  and  discrimi- 
nation, and  to  define  the  powers  and  duties  of  the  Attorney 
General  in  regard  thereto ;  and  declaring  an  emergency. 

"  UNFAIR    DISCRIMINATION  " — DEFINITION. 

SECTION  1.  Any  person,  firm  or  corporation,  foreign  or 
domestic,  doing  business  in  the  State  of  Oklahoma,  and 
engaged  in  the  production,  manufacture  or  distribution 
of  any  commodity  in  general,  that  intentionally,  for  the 
purpose  of  destroying  the  competition  of  any  regular, 
established  dealer  in  such  commodity,  or  to  prevent  the 
competition  of  any  person  who,  in  good  faith,  intends 
and  attempts  to  become  such  dealer,  shall  discriminate 


OKLAHOMA.  265 

between  different  sections,  communities  or  cities  of  this 
state  by  selling  such  commodity  at  a  lower  rate  in  one 
section,  community  or  city,  or  any  portion  thereof,  than 
such  person^  firm  or  corporation,  foreign  or  domestic, 
charges  for  such  commodity  in  another  section,  commu- 
nity or  city,  or  that  shall  discriminate  between  different 
sections,  communities  or  cities  of  this  state  by  selling 
such  commodity  at  a  lower  rate  in  one  section,  commu- 
nity or  city,  or  any  portion  thereof,  than  such  person, 
firm  or  corporation;  foreign  or  domestic,  charges  for  such 
commodity  in  another  section,  community  or  city  after 
equalizing  the  distance  from  the  point  of  production, 
manufacture  or  distribution  and  freight  rates  therefrom, 
shall  be  deemed  guilty  of  unfair  discrimination,  which  is 
hereby  declared  to  be  a  misdemeanor. 

INVESTIGATIONS — ACTIONS — REVOCATION    OF    CHARTERS    AND    PERMITS. 

SEC.  2.  If  complaint  shall  be  made  to  the  Attorney 
General  that  any  corporation  is  guilty  of  unfair  discrim- 
ination, as  defined  by  this  act,  he  shall  investigate  such 
complaint  and  for  that  purpose  he  may  subpoena  wit- 
nesses, administer  oaths;  take  testimony,  and  require  the 
production  of  books  or  other  documents,  and  if  in  his 
opinion  sufficient  grounds  exist  therefor,  he  may  admin- 
ister oaths,  take  testimony,  and  require  the  production 
of  books  or  other  documents,  and  if  in  his  opinion  suffi- 
cient grounds  exist  therefor,  he  may  prosecute  an  action 
in  the  name  of  the  state  in  the  proper  court  to  annul  the 
charter  or  revoke  the  permit  of  such  corporation^  as  the 
case  may  be,  and  to  permanently  enjoin  such  corporation 
from  doing  business  in  this  state,  and  if  in  such  action 
the  court  shall  find  that  such  corporation  is  guilty  of  un- 
fair discrimination,  as  defined  by  this  act,  such  court  shall 
annul  the  charter  or  revoke  the  permit  of  such  corpora- 
tion, and  may  permanently  enjoin  it  from  transacting 
business  in  this  state. 

VIOLATIONS  OF  ACT — PUNISHMENT. 

SEC.  3.  Any  person,  or  the  managing  agent  or  agents 
of  any  firm  or  corporation  violating  the  provisions  of  sec- 
tion one  (1)  of  this  act  shall  upon  conviction  thereof,  be 
fined  not  less  than  one  hundred  ($100.00)  dollars,  nor 
more  than  five  hundred  ($500.00)  dollars  for  each 
offense. 


266  LAWS  ON   TEUSTS  AND  MONOPOLIES. 

"  COMBINATION  "  OF  CORPORATIONS — DEFINITION. 

SEC.  4.  Where  two  or  more  corporations  engaged  in  the 
same  lines  of  business  shall  have  or  may  hereafter  be- 
come associated  together  by  the  owning,  holding  or  con- 
trolling of  certificates  of  stock,  or  other  interest,  in  more 
than  one  of  such  corporations  by  one  of  such  corporations, 
or  any  stockholder  thereof,  the  same  shall  be  deemed,  and 
is  hereby  declared  to  be,  a  "  combination/'  and  all  cor- 
porations so  linked  together,  and  all  auxiliary  corpora- 
tions and  business  plants  owned  or  controlled  by  them,  or 
either  of  them,  directly  or  indirectly,  are  declared  to  be 
members  of  such  combination. 

"  UNFAIR  COMPETITION  " DEFINITION EXCEPTIONS. 

SEC.  5.  Raising  or  lowering  by  such  combination,  or 
any  member  thereof,  in  the  immediate  territory  of  a 
financially  weaker  competitor^  the  price  of  a  commodity 
handled  by  such  competitor  or  lowering  the  price  charged 
for  services  rendered  the  public  by  such  competitor,  while 
at  the  same  time  the  same  combination,  or  some  member 
thereof,  is  engaged  in  buying  or  selling  a  like  commodity 
for  a  different  and  more  advantageous  price,  or  is  charg- 
ing a  greater  rate  for  like  services  rendered  the  public 
at  another  point  within  the  State  of  Oklahoma,  is 
hereby  declared  to  be  unfair  and  destructive  competition 
and  is  hereby  prohibited ;  and  the  doing  of  any  act  which, 
directly  or  indirectly,  brings  about  a  similar  effect  on 
such  weaker  competitor  shall  be  a  violation  of  this  act; 
provided^  a  proper  allowance  shall  be  made  for  grade  or 
quality  of  product  and  freight  rate.  Provided  nothing 
herein  contained  shall  prevent  such  combination,  or  any 
member  thereof,  from  meeting  any  price,  made  by  any 
one  not  connected  in  any  way  with,  or  influenced  by,  any 
member  thereof,  at  any  point  within  this  state  without  be- 
ing required  to  make  such  price  generally,  so  long  as  such 
outside  party  maintains  such  price  in  good  faith,  but  no 
longer,  if  such  point  be  within  the  immediate  territory  of 
a  financially  weaker  competitor. 

DAMAGES     TO     WEAKER     COMPETITOR LIABILITY     OF     "  COMBINATION." 

SEC.  6.  Every  such  weaker  competitor  injured  by  rea- 
son of  any  of  the  acts  herein  prohibited  in  the  foregoing 
section  may  recover,  as  damages,  of  the  offending  combi- 
nation, or  any  of  the  offending  members  thereof,  three 


OKLAHOMA.  267 

times  the  amount  of  actual  damages  sustained  thereby, 
together  with  a  reasonable  attorney  fee  for  collecting  such 
damages.  Lost  profits  may  be  recovered  as  damages,  and 
lost  profits  may  be  ascertained  by  taking  the  difference  in 
the  price  paid  or  received  for  a  commodity  or  for  serv- 
ices rendered  the  public  in  the  territory  of  such  weaker 
competitor  and  the  price  paid  or  received  for  a  like  com- 
modity or  like  services  rendered  at  any  other  point  within 
this  state  by  such  combination^  or  any  member  thereof. 
Grade  or  quality  of  product  and  freight  rate  to  be  con- 
sidered as  in  previous  section.  Suit  for  such  damages 
and  attorney  fees  may  be  brought  in  any  court  of  compe- 
tent jurisdiction  in  the  county  wherein  such  damage  may 
be  sustained. 

ACT    CUMULATIVE    TO    OTHER    LEGAL    REMEDIES. 

SEC.  7.  Nothing  in  this  act  shall  be  construed  as  re- 
pealing any  other  act,  or  part  of  an  act,  but  the  remedies 
herein  provided  shall  be  cumulative  to  all  other  remedies 
provided  by  law. 

EMERGENCY. 

SEC.  8.  An  emergency  is  hereby  declared  by  reason 
whereof  it  is  necessary  for  the  immediate  preservation  of 
the  public  health  and  safety  that  this  act  take  effect  and 
be  in  force  from  and  after  its  passage  and  approval. 

Approved,  March  29,  1913. 

COURT  DECISIONS. 

State  v.  Coyle,  130  Pac.,  316. 

Anderson  v.  Shawnee  Compress  Co.,  17  Okla..  231;  15 
L.  R.  A.  N.  S.,  846. 

Territory  v.  Long  Bell  Lumber  Co..  99  Pac.,  911. 


OREGON. 

There  are  no  anti-trust  laws  in  Oregon. 

COURT  DECISIONS. 

White  v.  Holman  (Or.)  74  Pac.,  933. 


269 


PENNSYLVANIA. 

There  are  no  anti-trust  laws  in  Pennsylvania. 

COURT  DECISIONS. 

The  Morris  Run  Company  v.  The  Barclay  Coal  Co., 
68  Penn.  St.,  173. 

Nester  et  al.  v.  Continental  Brewing  Co.  et  al.,  161 
Penn.,  473. 

271 


RHODE   ISLAND. 

There  are  no  statutory  provisions  on  anti-trust  subjects. 

COURT  DECISIONS. 

Oakdale  Mfg.  Co.  et  al.  v.  Sebastian  Garst,  18  E.  L, 
484. 

Macauley  Brothers  v.  Tierney,  19  R.  L,  255. 
State  v.  Eastern  Coal  Co.,  29  R.  L,  254. 

16491—13 18  273 


SOUTH   CAROLINA. 

CONSTITUTION. 

ART.  IX,  SEC,  13.  The  general  assembly  shall  enact 
laws  to  prevent  all  trusts,  combinations,  contracts  and 
agreements  against  the  public  welfare;  and  to  prevent 
abuses,  unjust  discriminations  and  extortion  in  all 
charges  of  transporting  and  transmitting  companies ;  and 
shall  pass  laws  for  the  supervision  and  regulation  of  such 
companies  by  commission  or  otherwise,  and  shall  provide 
adequate  penalties,  to  the  extent,  if  necessary  for  that 
purpose,  of  forfeiture  of  their  franchises. 

STATUTES. 

All  arrangements,  contracts,  agreements,  trusts  or  com- 
binations between  two  or  more  persons  as  individuals, 
firms  or  corporation  made  with  a  view  to  lessen,  or  which 
tend  to  lessen,  full  and  free  competition  in  the  importa- 
tion or  sale  of  articles  imported  into  this  state,  or  in  the 
manufacture  or  sale  of  articles  of  domestic  growth,  or  of 
domestic  raw  material,  and  all  arrangements,  contracts, 
agreements,  trusts  or  combinations  between  persons  or 
corporations,  designed  or  which  tend  to  advance,  reduce 
or  control  the  price  or  the  cost  to  the  producer  or  to  the 
consumer  of  any  such  product  or  article,  and  all  arrange- 
ments, contracts,  trusts,  syndicates,  associations  or  com- 
binations between  two  or  more  persons  as  individuals, 
firms,  corporations,  syndicates  or  associations,  that  may 
lessen  or  affect  in  any  manner  the  full  and  free  competi- 
tion in  any  tariff,  rates,  tolls,  premiums  or  prices,  or 
seeks  to  control  in  any  way  or  manner  such  tariffs,  rates, 
tolls,  premiums  or  prices  in  any  branch  of  trade,  business 
or  commerce,  are  hereby  declared  to  be  against  public 
policy,  unlawful  and  void ;  and  any  violation  of  the  pro- 
vision hereof  shall  be  deemed,  and  is  hereby  declared  to 
be,  destructive  of  full  and  free  competition  and  a  con- 
spiracy against  trade,  and  any  person  or  persons  who 
may  engage  in  any  such  conspiracy,  or  who  shall,  as  prin- 

275 


276  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

cipal,  manager,  director  or  agent,  or  in  any  other  capac- 
ity, knowingly  carry  out  any  of  the  stipulations,  pur- 
poses, prices,  rates  or  orders  made  in  furtherance  of  such 
conspirac}^,  shall,  on  conviction,  be  punished  by  a  fine  of 
not  less  than  one  hundred  dollars  or  more  than  five  thou- 
sand dollars,  and  by  imprisonment  in  the  penitentiary 
not  less  than  six  months,  or  more  than  ten  years,  or,  in 
the  judgment  of  the  court,  by  either  such  fine  or  such 
imprisonment.  (Criminal  Code,  Sec.  212.) 

Whenever  complaint  is  made  upon  affidavit  or  affi- 
davits showing  a  prima  facie  case  of  violation  of  the  pro- 
visions of  the  preceding  section  by  any  corporation,  do- 
mestic or  foreign,  it  shall  be  the  duty  of  the  attorney- 
general  to  bring  action  against  such  domestic  corporation 
to  forfeit  its  charter,  and  for  the  purpose  of  such  for- 
feiture he  shall  apply  to  any  court  of  competent  juris- 
diction for  an  order  restraining  such  offending  corpora- 
tion, and  in  cases  where,  in  his  discretion,  it  is  necessary, 
for  the  immediate  appointment  of  a  receiver  for  such 
offending  corporation,  where  such  forfeiture  affects  a 
creditor  or  creditors  of  such  offending  corporation,  and 
in  case  such  violation  shall  be  established  the  court  shall 
adjudge  the  charter  of  such  corporation  to  be  forfeited, 
and  such  corporation  shall  be  dissolved  and  its  charter 
shall  cease  and  determine ;  and  in  the  case  of  such  show- 
ing as  to  a  foreign  corporation  an  action  shall  be  begun 
by  the  attorney-general  in  said  court  to  determine  the 
truth  of  such  charge,  and  in  case  such  charge  shall  be 
considered  established  the  effect  of  the  judgment  of  the 
court  shall  be  to  deny  such  corporation  the  recognition 
of  its  corporate  existence  in  any  court  of  law  or  equity 
in  this  state.  But  nothing  in  this  section  shall  be  con- 
strued to  affect  any  right  of  action  then  existing  against 
such  corporation.  (Criminal  Code,  Sec.  213.) 

Any  person  or  persons  or  corporation  that  may  be  in- 
jured or  damaged  by  any  such  arrangement,  contract, 
agreement,  trust  or  combination  described  in  section  212 
may  sue  for  and  recover,  in  any  court  of  competent  juris- 
diction in  this  state,  of  any  person,  persons  or  corporation 
operating  such  trust  or  combination,  the  full  consideration 
or  sum  paid  by  him  or  them  for  any  goods,  wares,  mer- 
chandise or  articles  the  sale  of  which  is  controlled  by 
such  combination  or  trust.  (Criminal  Code,  Sec.  214.) 

Any  and  all  persons  may  be  compelled  to  testify  in 
any  action  or  prosecution  under  the  three  preceding  sec- 


SOUTH   CAROLINA.  277 

tions;  provided,  that  such  testimony  shall  not  be  used  in 
any  other  action  or  prosecution  against  such  witness  or 
witnesses,  any  such  witness  or  witnesses  shall  forever  be 
exempt  from  any  prosecution  for  the  act  or  acts  concern- 
ing which  he  or  they  testify.  (Criminal  Code,  Sec.  215.) 
See  also  sees.  2840-7  of  the  Civil  Code  to  same  effect. 

ANTI-TRUST  ACT  OF    1902. 

SECTION  1.  Be  it  enacted  by  the  general  assembly  of  the 
state  of  South  Carolina:  Any  corporation  organized 
under  the  laws  of  this  or  any  other  state  or  country,  and 
transacting  or  conducting  any  kind  of  business  in  this 
state,  or  any  partnership  or  individual,  or  other  associa- 
tion of  persons  whatsoever,  who  shall  create,  enter  into, 
become  a  member  of  or  a  party  to  any  pool,  trust,  agree- 
ment, combination,  confederation  or  understanding  with 
any  other  corporation,  partnership,  individual  or  any 
other  person  or  association  of  persons,  to  regulate  or  fix 
the  price  of  any  article  of  manufacture,  mechanism,  mer- 
chandise, commodity,  convenience,  repair,  any  product 
of  mining  or  any  article  or  thing  whatsoever,  or  to  main- 
tain said  price  when  so  regulated  or  fixed,  or  shall  enter 
into,  become  a  member  of  or  a  party  to  any  pool,  agree- 
ment, combination,  contract,  association  or  confederation 
to  fix  or  limit  the  amount  or  quantity  of  any  article  of 
manufacture,  mechanism,  merchandise,  commodity,  con- 
venience, repair,  any  product  of  mining,  or  any  article 
or  thing  whatsoever,  or  the  price  or  premium  to  be  paid 
for  insuring  property  against  loss  or  damage  by  fire, 
lightning,  storm,  cyclone,  tornado,  or  any  other  kind  of 
policy  issued  by  any  corporation,  partnership,  individual 
or  association  of  persons  aforesaid,  shall  be  deemed  and 
adjudged  guilty  of  a  conspiracy  to  defraud,  and  to  be 
subject  to  the  penalties  as  provided  by  this  act. 

SEC.  2.  A  "  monopoly  "  is  any  union,  or  combination, 
or  consolidation,  or  affiliation  of  capital,  credit,  property, 
assets,  trade,  custom,  skill  or  acts,  or  any  other  valuable 
thing  or  possession,  by  or  between  persons,  firms  or  cor- 
porations, whereby  any  one  of  the  purposes  or  objects 
porations,  or  associations  of  persons,  firms  or  corpora- 
tions, whereby  any  one  of  the  purposes  or  objects 
mentioned  in  this  act  is  accomplished,  or  sought  to  be 
accomplished,  or  whereby  any  one  or  more  of  said  pur- 
poses are  promoted  or  attempted  to  be  executed  or  carried 


278  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

out,  or  whereby  the  several  results  described  herein  are 
reasonably  calculated  to  be  produced ;  and  a  "  monopoly  " 
as  thus  defined  and  contemplated,  includes  not  merely 
such  combinations  by  and  between  two  or  more  persons, 
firms  or  corporations  acting  for  themselves,  but  is  espe- 
cially defined  and  intended  to  include  all  aggregations, 
amalgamations,  affiliations,  consolidations  or  incorpora- 
tions of  capital,  skill,  credit,  assets,  property,  custom 
trade,  or  other  valuable  thing  or  possession,  whether  ef- 
fected by  the  ordinary  methods  of  partnership  or  by 
actual  union  under  the  legal  form  of  a  corporation,  or 
an  incorporated  body  resulting  from  the  union  of  one  or 
more  distinct  firms  or  corporations,  or  by  the  purchase, 
acquisition  or  control  of  shares  or  certificates  of  stocks 
or  bonds,  or  other  corporate  property  or  franchises,  and 
all  corporations  or  partnerships  that  have  been  or  may 
be  created  by  the  consolidation  or  amalgamation  of  the 
separate  capital,  stock,  bonds,  assets,  credits,  properties, 
custom,  trade  or  corporate  or  firm  belongings  of  two  or 
more  firms  or  corporations  or  companies,  are  especially 
declared  to  constitute  monopolies,  within  the  meaning  of 
this  act,  if  so  created  or  entered  into  for  any  one  or  more 
of  the  purposes  named  in  this  act ;  and  a  "  monopoly," 
as  defined  in  this  section,  is  hereby  declared  to  be  unlaw- 
ful and  against  public  policy;  and  any  and  all  persons, 
firms,  corporations  or  associations  of  persons  engaged 
therein  shall  be  deemed  and  adjudged  guilty  of  a  con- 
spiracy to  defraud,  and  shall  be  subject  to  the  penalties 
prescribed  in  this  act. 

SEC.  3.  If  any  person,  persons,  company,  partnership, 
association  or  corporation  engaged  in  the  manufacture 
or  sale  of  any  article  of  commerce  or  consumption  from 
the  raw  material  produced  or  mined  in  this  state  shall, 
with  the  intent  or  purpose  of  driving  out  competition,  or 
for  the  purpose  of  financially  injuring  competitors,  sell 
at  less  than  the  cost  of  manufacture,  or  give  away  their 
manufactured  products,  for  the  purpose  of  driving  out 
competition  or  financially  injuring  competitors  engaged 
in  the  manufacture  and  refining  of  raw  material  in  this 
state,  said  person,  persons,  company,  partnership,  asso- 
ciation or  corporation  resorting  to  this  method  of  secur- 
ing a  monopoly  in  the  manufacture,  refining  and  sale  of 
the  finished  product  produced  or  mined  in  this  state,  shall 
be  deemed  guilty  of  a  conspiracy  to  form  or  secure  a 


SOUTH   CAROLINA.  279 

trust  or  monopoly  in  restraint  of  trade,  and,  on  convic- 
tion, shall  be  subject  to  the  penalties  of  this  act. 

SEC.  4.  Any  person,  partnership,  firm  or  association, 
or  any  representative  or  agent  thereof,  or  any  corpora- 
tion or  company,  or  any  officer  representative  or  agent 
thereof,  violating  any  of  the  provisions  of  this  act,  shall 
forfeit  not  less  than  two  hundred  dollars,  nor  more  than 
five  thousand  dollars,  for  every  such  offense,  and  each 
day  such  person,  corporation,  partnership  or  association 
shall  continue  to  do  so,  shall  be  a  separate  offense,  the 
penalties  in  such  cases  to  be  recovered  by  an  action  in 
the  name  of  the  state,  at  the  relation  of  the  attorney- 
general  or  the  solicitor  of  the  judicial  circuit  within 
which  the  offense  was  committed;  the  moneys  thus  col- 
lected to  go  into  the  state  treasury,  and  to  become  a  part 
of  the  general  fund  except  as  hereinafter  provided.  The 
amount  of  the  forfeit  to  be  fixed  by  the  judge  before 
whom  the  case  is  tried  in  each  case,  within  the  aforesaid 
limits;  the  collection  of  which  penalty  shall  be  enforced 
as  the  collections  of  fines  against  defendants  upon  con- 
viction of  a  misdemeanor. 

SEC.  5.  If  any  two  or  more  persons  or  corporations, 
who  are  engaged  in  buying  or  selling  any  article  of  com- 
merce, manufacture,  mechanism,  merchandise,  com- 
modity, convenience,  repair,  any  product  of  mining  or 
any  article  or  thing  whatsoever,  shall  enter  into  any  pool, 
trust,  agreement,  combination,  confederation,  association 
or  understanding  to  control  or  limit  the  trade  in  any  such 
article  or  thing;  or  to  limit  competition  in  such  trade 
by  refusing  to  buy  from  or  sell  to  any  other  person  or 
corporation  any  such  article  or  thing  aforesaid,  for  the 
reason  that  such  other  person  or  corporation  is  not  a 
member  of  or  a  party  to  such  pool,  trust,  agreement,  com- 
bination, confederation,* association  or  understanding;  or 
shall  boycott  or  threaten  any  person  or  corporation  for 
buying  from  or  selling  to  any  other  person  or  corporation 
who  is  not  a  member  of  or  a  party  to  such  pool,  trust, 
agreement,  combination,  confederation,  association  or 
understanding,  any  such  article  or  thing  aforesaid,  it 
shall  be  a  violation  of  this  act;  and  any  person,  firm, 
corporation  or  association  of  persons  committing  such 
violation  shall  be  deemed  and  adjudged  guilty  of  a  con- 
spiracy to  defraud,  and  shall  be  subject  to  the  penalties 
prescribed  in  this  act. 


280  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

SEC.  6.  Any  corporation  created  or  organized  by  or 
under  the  laws  of  this  state  which  shall  violate  any  of 
the  provisions  of  the  preceding  sections  of  this  act  shall 
hereby  forfeit  its  corporate  rights  and  franchises;  and 
its  corporate  existence  shall,  upon  the  proper  proof  being 
made  thereof  in  any  court  of  competent  jurisdiction  in 
the  state,  be  by  the  court  declared  forfeited,  void  and  of 
no  effect,  and  shall  thereupon  cease  and  determine;  and 
any  corporation  created  or  organized  by  or  under  the 
law  of  any  other  state  or  country  which  shall  violate  any 
of  the  provisions  of  the  preceding  sections  of  this  act, 
shall  thereby  forfeit  its  right  and  privilege  thereafter  to 
do  any  business  in  this  state;  and  upon  proper  proof 
being  made  thereof  in  any  court  of  competent  jurisdic- 
tion in  this  state,  its  rights  and  privileges  to  do  business 
in  this  state  shall  be  declared  forfeited;  and  in  all  pro- 
ceedings to  have  such  forfeiture  declared,  proof  that  any 
person  who  has  been  acting  as  agent  of  such  foreign  cor- 
poration in  transacting  its  business  in  this  state  has  been, 
while  acting  as  such  agent  and  in  the  name,  behalf  or  in- 
terest of  such  foreign  corporation,  violating  any  pro- 
visions of  the  preceding  sections  of  this  act,  shall  be  re- 
ceived as  prima  facie  proof  of  the  act  of  the  corporation 
itself;  and  it  shall  be  the  duty  of  the  clerk  of  said  court 
to  certify  the  decree  thereof  to  the  secretary  of  state. 

SEC.  7.  It  shall  be  the  duty  of  the  attorney-general  and 
the  prosecuting  attorney  of  each  circuit  where  the  offense 
is  committed,  respectively,  to  enforce  the  provisions  of 
this  act.  The  prosecuting  attorney  or  solicitor  shall  in- 
stitute and  conduct  all  suits  begun  in  the  circuit  courts, 
and  upon  appeal  the  attorney-general  shall  prosecute  said 
suits  in  the  supreme  court. 

SEC.  8.  The  provisions  of  the  foregoing  sections  and 
the  pains  and  penalties  provided 'for  violations  of  this 
act  shall  be  held  and  construed  to  be  cumulative  to  all 
laws  now  in  force  in  this  state;  and  provided,  that  the 
provisions  of  this  act  shall  not  exempt  from  punishment 
or  forfeiture  any  person,  firm,  association  of  persons  or 
corporations,  who  may  have  violated  or  offended  against 
any  law  now  in  existence  that  may  be  or  may  be  con- 
strued to  be  repealed  by  this  act  or  in  conflict  herewith ; 
and  provided  further,  that  nothing  in  this  act  shall  be 
deemed  or  construed  to  affect  any  suits  or  prosecutions 
now  pending  or  hereafter  to  be  instituted  upon  any 


SOUTH  CAROLINA.  281 

course  of  action,  forfeiture  or  penalty  accruing  or  to 
accrue  prior  to  the  date  of  the  taking  effect  of  this  act, 
but  all  such  rights  to  maintain,  institute  or  prosecute  all 
such  causes  of  action  are  hereby  reserved  to  the  state  in 
the  same  manner  and  with  the  same  effect  as  if  this  law 
had  not  been  passed.  (L.  1902,  No.  574.) 

COURT  DECISIONS. 

Edwards  v.  Southern  E.  Co.,  66  S.  C.,  277 ;  44  S.  E.,  748. 
State  v.  Virginia-Carolina  Chemical  Co.,  71  S.  C.,  544. 
Walter  A.  Wood  Mowing,  etc.,  v.  Greenwood  Hardware 
Co.,  75  S.  C.,  378. 

Packard  v.  Byrd,  73  S.  C.,  1 ;  6  L.  E.  A.  K  S.,  547. 
State  v.  Warehouse  Commission,  92  S.  C.,  81. 


SOUTH   DAKOTA. 

CONSTITUTION. 

ART.  XVII,  SEC.  20.  Monopolies  and  trusts  shall  never 
be  allowed  in  this  state  and  no  incorporated  company,  co- 
partnership or  association  of  persons  in  this  state  shall 
directly  or  indirectly  combine  or  make  any  contract  with 
any  incorporated  company,  foreign  or  domestic,  through 
their  stockholders  or  the  trustees  or  assigns  of  such  stock- 
holders, or  with  any  co-partnership  or  association  of  per- 
sons, or  in  any  manner  whatever  to  fix  the  prices,  limit 
the  production  or  regulate  the  transportation  of  any 
product  or  commodity  so  as  to  prevent  competition  in 
such  prices,  production  or  transportation  or  to  establish 
excessive  prices  therefor. 

The  legislature  shall  pass  laws  for  the  enforcement  of 
this  section  by  adequate  penalties  and  in  the  case  of  in- 
corporated companies,  if  necessary  for  that  purpose  may, 
as  a  penalty,  declare  a  forfeiture  of  their  franchises. 

STATUTES. 
ANTI-TRUST  ACT  OF  1909. 

SECTION  1.  Within  the  meaning  of  this  act  a  trust  or 
monopoly  is  a  combination  of  capital  or  skill,  by  two  or 
more  persons,  firms,  corporations,  or  association  of  per- 
sons. 

First.  To  create  or  carry  out  restrictions  in  trade. 

Second.  To  limit  the  production  or  to  increase  or  re- 
duce the  price  of  commodities. 

Third.  To  prevent  competition  in  the  manufacture, 
transportation,  sale  or  purchase  of  merchandise,  produce 
or  commodities. 

Fourth.  To  fix  any  standard  or  figure  whereby  the 
price  to  the  public  shall  be  in  any  manner  established 
or  controlled. 

SEC.  2.  That  it  shall  be  unlawful  for  any  person  or  per- 
sons, corporations,  co-partnership  or  association  of  per- 

283 


284  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

sons  in  this  state,  directly  or  otherwise,  to  fix  prices, 
limit  the  production,  or  regulate  the  transportation  of 
any  produce  or  commodity  so  as  to  obstruct  or  delay  or 
prevent  competition  in  such  production  or  transportation, 
or  to  obstruct  or  prevent  competition  in  the  purchase  or 
sale  of  any  product  or  commodity. 

SEC.  3.  That  it  shall  be  unlawful  for  any  person  or 
persons,  corporation,  co-partnership,  or  association  of 
persons  in  any  other  state  to  directly  or  otherwise  com- 
bine or  make  any  contract,  understanding  or  agreement 
with  any  person  or  persons,  corporation,  co-partnership 
or  association  of  persons  in  this  state  to  fix  prices,  limit 
the  production  of  commodities  or  regulate  the  transpor- 
tation, directly  or  otherwise,  of  any  product  or  com- 
modity so  as  to  obstruct  or  prevent  competition,  or  to 
prevent  or  obstruct  competition  in  the  purchase  or  sale 
of  any  product  or  commodity. 

SEC.  4.  That  it  shall  be  unlawful  for  any  person  or  per- 
sons, corporation,  co-partnership  or  association  of  per- 
sons in  this  state  to  directly  or  otherAvise  combine  or 
make  any  contract,  understanding  or  agreement  with 
any  person  or  persons,  corporation,  co-partnership  or 
association  of  persons  within  or  without  this  state  to  fix 
prices,  limit  the  production  of  commodities,  or  regulate 
the  transportation  directly  or  otherwise  of  any  product 
or  commodity  so  as  to  obstruct  or  prevent  competition 
within  this  state  or  so  as  to  obstruct  competition  in  the 
purchase  or  sale  of  any  product  or  commodity  within  this 
state. 

SEC.  5.  That  it  shall  be  unlawful  for  two  or  more  cor- 
porations, co-partnerships  or  associations  of  persons  or- 
ganized or  existing  without  the  State,  but  doing  business 
within  this  state,  to  directly  or  otherwise  combine  or 
make  any  contract,  understanding  or  agreement  with 
each  other  to  fix  prices,  limit  the  production  of  com- 
modities or  regulate  the  transportation  directly  or  other- 
wise of  any  product  or  commodity  so  as  to  obstruct  or 
prevent  competition  within  this  state  or  so  as  to  ob- 
struct or  prevent  competition  in  the  purchase  or  sale  of 
any  product  or  commodity  within  this  state. 

SEC.  6.  Any  person  or  persons,  co-partnership  or  asso- 
ciation of  persons  or  corporation,  or  any  officer,  agent  or 
servant  of  any  corporation,  or  association  of  persons  con- 
victed of  violating  any  of  the  provisions  of  this  act  shall 


SOUTH   DAKOTA.  285 

be  deemed  guilty  of  a  misdemeanor  and  upon  conviction 
thereof  shall  be  fined  for  the  first  offense  not  more  than 
five  thousand  dollars  and  upon  conviction  of  the  second 
or  any  subsequent  offense  shall  be  fined  not  more  than 
ten  thousand  dollars. 

SEC.  7.  All  fines  recovered  under  this  act  shall  be  paid 
as  follows :  One-half  thereof  into  the  general  fund  of  the 
county  in  which  the  action  is  prosecuted  and  one-half  into 
the  general  fund  of  the  state. 

SEC.  8.  It  shall  be  the  special  duty  of  the  state's  attor- 
ney of  each  county  of  this  state,  upon  the  affidavit  of  any 
person  or  persons,  showing  that  any  corporation,  person 
or  persons,  association  of  persons,  or  any  officer,  agent  or 
servant  of  any  corporation,  co-partnership  or  association 
of  persons  have  violated  any  of  the  provisions  of  this 
act,  or  without  such  affidavit  when  he  has  reason  to  be- 
lieve that  any  of  the  provisions  of  this  act  have  been  or 
are  being  violated  to  make  complaint  and  cause  the  ar- 
rest of  such  person  or  persons,  corporation,  officer,  agent 
or  servant  of  any  such  corporation,  co-partnership  or 
association  of  persons  and  to  prosecute  such  action  in  the 
court  or  courts  having  jurisdiction  thereof,  and  it  shall 
be  the  duty  of  such  state's  attorney  to  immediately  upon 
making  such  complaint  notify  the  attorney  general  there- 
of and  it  shall  thereupon  be  the  duty  of  such  attorney 
general  to  aid  in  such  prosecution.  Provided,  that  the 
provisions  of  this  section  shall  not  be  construed  to  pre- 
vent any  person  from  making  complaint  to  any  court  of 
competent  jurisdiction  for  any  violations  of  the  provi- 
sions of  this  act,  and  in  such  case  the  court  shall  issue  a 
warrant  and  proceed  the  same  as  though  the  state's  at- 
torney had  made  the  complaint,  and  the  court  may  also 
permit  any  attorney  whom  the  complainant  may  employ 
to  appear  and  prosecute  such  action  at  any  stage  of  the 
proceedings  therein.  Provided  further,  that  the  provi- 
sions of  this  section  shall  not  be  construed  to  in  any  man- 
ner prevent  the  attorney  general  of  this  state  from  mak- 
ing a*  complaint  in  any  court  of  competent  jurisdiction 
for  any  violations  of  the  provisions  of  this  act  and  prose- 
cute the  same  in  the  same  manner  and  with  the  same 
powers  as  herein  provided  for  state's  attorneys. 

SEC.  9.  Any  corporation  organized  and  doing  business 
under  the  laws  of  this  state,  which  shall  violate  any  of 
the  provisions  of  this  act,  in  addition  to  the  penalties 


286  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

hereinbefore  provided,  shall  forfeit  its  charter  and  it 
shall  be  the  duty  of  any  state's  attorney  in  this  state 
and  the  attorney  general  to  prosecute  an  action  in  the 
name  of  the  state  by  quo  warranto  or  other  proper  pro- 
ceeding against  any  such  offending  corporation. 

SEC.  10.  Any  foreign  corporation  authorized  to  do  busi- 
ness within  this  state,  which  shall  violate  any  of  the  pro- 
visions of  this  act  shall  in  addition  to  the  penalties  here- 
inbefore provided,  forfeit  its  right  to  do  business  in  this 
state,  and  such  foreign  corporation  may  be  restrained  by 
an  order  of  injunction  issued  by  any  court  of  competent 
jurisdiction  in  this  state  from  further  conducting  busi- 
ness in  this  state. 

The  order  of  injunction  mentioned  herein  may  be 
issued  upon  affidavits  which  shall  show  to  the  satisfac- 
tion of  the  court  or  judge  thereof  to  whom  application 
is  made  that  such  corporation  named  as  defendant  in 
application  and  affidavit  for  an  order  of  injunction,  has 
violated  some  provisions  of  this  act. 

The  order  of  injunction  issued  upon  such  affidavit  may 
be  served  in  the  manner  now  provided  by  law  for  the 
service  of  such  orders  and  in  the  absence  of  the  defend- 
ant therein,  such  order  of  injunction  may  be  served  on 
the  duly  authorized  resident  agent  of  such  corporation 
or  upon  any  officer  or  managing  agent  thereof. 

Any  judge  of  a  circuit  court  or  of  the  supreme  court 
may  in  like  manner  enjoin  and  restrain  any  corporation 
organized  under  the  laws  of  this  state  from  carrying  on 
any  manufacturing  or  wholesale  or  retail  business,  being 
conducted  or  carried  on  in  violation  of  any  of  the  provi- 
sions or  spirit  and  intent  of  this  act,  in  this  state,  and  all 
final  restraining  orders  may  be  perpetual  or  for  such 
period  and  upon  such  terms  and  conditions  as  the  court 
or  judge  thereof  shall  determine.  All  laws,  rules  and 
regulations  now  in  force  relative  to  applications  for  and 
granting  orders  of  injunction  in  this  state  shall  apply  to 
proceedings  under  the  provisions  of  this  act,  so  far  as 
the  same  are  not  different  from  or  in  conflict  with  the 
provisions  of  this  act. 

SEC.  11.  That  in  all  prosecutions,  hearings  and  proceed- 
ings, under  the  provisions  of  this  act,  whether  civil  or 
criminal,  no  person  shall  be  excused  from  attending  and 
testifying,  or  from  producing  books,  papers,  contracts, 
agreements,  or  documents,  before  the  courts  of  this  state, 


SOUTH   DAKOTA.  287 

or  in  obedience  to  the  subpoena  of  the  same,  on  the 
grounds  or  for  the  reason  that  the  testimony  or  evidence, 
documentary  or  otherwise  required  of  him,  may  tend  to 
criminate  him  or  subject  him  to  penalty  or  forfeiture, 
but  the  testimony  so  taken  shall  not  be  used  against  such 
witness  in  any  criminal  proceedings  instituted  against 
such  witness  in  any  of  the  courts  of  this  state.  Any  per- 
son, or  any  officer  or  agent  in  the  service  or  employ  of 
any  corporation,  co-partnership  or  association  of  persons, 
who  shall  neglect  or  refuse  to  make  returns,  attend  and 
testify  or  answer  any  lawful  requirement  hereinbefore 
provided  for,  or  produce  books,  papers,  contracts,  agree- 
ments, and  documents,  if  in  his  custody,  or  power  to  do 
so,  in  obedience  to  the  subpoenas  of  the  courts,  shall  be 
deemed  guilty  of  contempt  and  be  punished  as  is  pro- 
vided by  law. 

SEC.  12.  That  any  suit  in  equity  brought  in  any  court 
in  this  state  under  this  act,  wherein  the  state  is  com- 
plainant, the  attorney-general  or  the  state's  attorney  may 
file  with  the  clerk  of  such  court  a  certificate  that,  in  his 
opinion,  the  case  is  of  general  public  importance,  a  copy 
of  which  shall  be  immediately  furnished  by  such  clerk 
to  the  judge  of  the  court  in  which  said  case  is  pending. 
Thereupon  such  case  shall  be  given  precedence  over  others 
and  in  every  way  expedited,  and  be  assigned  for  hearing 
at  the  earliest  practicable  day. 

SEC.  13.  That  whenever  it  shall  appear  to  the  court  be- 
fore which  any  civil  or  criminal  proceedings  under  this 
act  shall  be  pending,  that  the  ends  of  justice  require  that 
other  parties  shall  be  brought  before  the  court,  the  court 
may  cause  them  to  be  summoned  whether  they  reside  in 
the  county  where  the  court  is  held  or  not,  and  subpoenas 
to  that  end  may  be  served  in  that  county. 

SEC.  14.  Any  person  or  persons,  co-partnership,  corpo- 
ration or  association  of  persons,  who  may  suffer  damage 
by  reason  of  the  unlawful  operation  as  hereinbefore  pro- 
vided, of  any  pool,  trust  or  combination,  may  maintain 
a  civil  action  therefor  in  any  of  the  courts  of  this  state 
having  competent  jurisdiction  thereof,  and  may  recover 
the  amount  of  damages  sustained,  together  with  the  costs 
of  suit,  including  a  reasonable  attorney's  fee  to  be  fixed 
by  the  court. 

SEC.  15.  It  shall  be  the  duty  of  the  secretary  of  this 
state,  on  application  for  a  charter  to  establish  any  cor- 


288  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

poration,  to  require  at  least  two  of  the  incorporators  to 
make  oath  or  affirmation  that  such  corporation  is  not 
formed  for  the  purpose  of  enabling  any  corporation  or 
corporations  to  avoid  the  provisions  of  this  act  and  if 
such  oath  or  affirmation  be  not  made  or  is  not  satisfac- 
tory to  the  secretary  of  the  state  he  is  authorized  to 
withhold  such  charter.  (L.  1909,  c.  224.) 

XX)TJRT  DECISIONS. 

Hartford  Fire  Ins.  Co.  v.  Perkins,  125  Fed.,  502. 
State  v.  Central  Lumber  Co.,  24  S.  D.,  136;  226  U.  S., 
157. 


TENNESSEE. 

CONSTITUTION. 

ART.  I,  SEC.  22.  Perpetuities  and  monopolies  are  con- 
trary to  the  genius  of  a  free  state,  and  shall  not  be 
allowed. 

[Adopted,  February  23,  1870.] 

STATUTES. 

ANTI-TRUST  LAW  OF   1903. 

That  from  and  after  the  passage  of  this  act  all  ar- 
rangements, contracts,  agreements,  trusts  or  combina- 
tions between  persons  or  corporations  made  with  a  view 
to  lessen,  or  which  tend  to  lessen  full  and  free  competi- 
tion in  the  importation  or  sale  of  articles  imported  into 
this  state,  or  in  the'  manufacture  or  sale  of  articles  of 
domestic  growth  or  of  domestic  raw  material,  and  all  ar- 
rangements, contracts,  agreements,  trusts  or  combinations 
between  persons  or  corporations  designed,  or  which  tend 
to  advance,  reduce  or  control  the  price  or  the  cost  to  the 
produced  or  the  consumer  of  any  such  product  or  article, 
are  hereby  declared  to  be  against  public  policy,  unlawful 
and  void. 

That  any  corporation  chartered  under  the  laws  of  the 
state  which  shall  violate  any  of  the  provisions  of  this 
act  shall  thereby  forfeit  its  charter  and  its  franchise, 
and  its  corporate  existence  shall  thereupon  cease  and  de- 
termine. Every  foreign  corporation  which  shall  violate 
any  of  the  provisions  of  this  act  is  hereby  denied  the 
right  to  do,  and  is  prohibited  from  doing,  business  in  this 
state.  It  is  hereby  made  the  duty  of  the  attorney -gen- 
eral of  this  state  to  enforce  these  provisions  by  due  proc- 
ess of  law. 

That  any  violation  of  the  provisions  of  this  act  shall 
be  deemed,  and  is  hereby  declared  to  be,  destructive  of 
full  and  free  competition  and  a  conspiracy  against  trade, 
and  any  person  or  persons  who  may  engage  in  any  such 
conspiracy  or  who  shall,  as  principal,  manager,  director 

16491—13 19  289 


290  LAWS   ON   TEUSTS  AND   MONOPOLIES. 

or  agent,  or  in  any  other  capacity,  knowingly  carry  out 
any  of  the  stipulations,  purposes,  prices,  rates  or  orders 
made  in  furtherance  of  such  conspiracy,  shall  upon  con- 
viction be  punished  by  a  fine  of  not  less  than  one  hundred 
dollars  or  more  than  five  thousand  dollars,  and  by  im- 
prisonment in  the  penitentiary  not  less  than  one  year  nor 
more  than  ten  years;  or  in  the  judgment  of  the  court,  by 
either  such  fine  or  imprisonment. 

That  any  person  or  persons  or  corporations  that  may 
be  injured  or  damaged  by  any  such  arrangement,  con- 
tract, agreement,  trust  or  combination,  described  in  sec- 
tion 1  of  this  act,  may  sue  for  and  recover  in  any  court 
of  competent  jurisdiction  in  this  state  of  any  person  or 
persons  or  corporation  operating  such  trusts  or  combina- 
tions, the  full  consideration  or  sum  paid  by  him  or  them 
of  any  goods,  wares,  merchandise  or  articles,  the  sale  of 
which  is  controlled  by  such  combination  or  trust.  '  (L. 
1903,  c.  140;  Sees.  1-4.) 

See  also  note  to  section  6622  of  Supplement  to  Shan- 
non's Code  (1903). 

It  shall  be  unlawful  for  any  person,  firm  or  corpora- 
tion engaged  in  the  business  of  manufacturing  in  this 
or  any  other  state  to  give  away  or  sell  for  a  less  price 
than  the  cost  of  manufacture  any  manufactured  article 
in  this  state  with  the  intent  and  purpose  of  destroying 
honest  competition. 

Any  person  or  persons  violating  [the  preceding  sec- 
tion] shall  be  deemed  guilty  of  a  misdemeanor,  and,  upon 
conviction,  shall  be  fined  not  less  than  ten  nor  more  than 
five  thousand  dollars;  provided,  however,  that  nothing 
in  this  act  shall  be  construed  to  prohibit  the  distribution 
to  consumers  of  specimens  of  proprietary  articles  in  good 
faith  as  a  sample.  (L.  1907.  c.  36 ;  as  amended  by  L.  1907, 
c.  360.) 

COURT  DECISIONS. 

Bailey  et  al.  v.  Ass'n  of  Master  Plumbers  of  Memphis, 
52  S.  W.,  853;  103  Tenn.,  99;  46  L.  R.  A.,  561. 

Mallory  v.  Hanaur  Oil  Works,  86  Tenn.,  598. 

American  Handle  Co.  v.  Standard  Handle  Co.,  Tenn. 
Ch.  App.,  59;  S/W.,  709'. 

State  v.  Witherspoon,  115  Tenn..  138. 

Standard  Oil  Co.  v.  State.  117  Tenn.,  618,  662;  10 
L.  R.  A.  N.  S.,  1027. 

Post  v.  Railroad,  103  Tenn.,  184. 


TEXAS. 

CONSTITUTION. 

ART.  I,  SEC.  26.  Perpetuities  and  monopolies  are  con- 
trary to  the  genius  of  a  free  government  and  shall  never 
be  allowed. 

ART.  X,  SEC.  5.  No  railroad  or  other  corporation,  or 
the  lessees,  purchasers  or  managers  of  any  railroad  cor- 
poration, shall  consolidate  the  stock,  property  or  fran- 
chises of  such  corporation  with,  or  lease  or  purchase  the 
works  or  franchises  of  or  in  any  way  control  any  railroad 
corporation  owning  or  having  under  its  control  a  parallel 
or  competing  line;  nor  shall  any  officer  of  such  railroad 
corporation  act  as  an  officer  of  any  other  railroad  cor- 
poration owning  or  having  the  control  of  a  parallel  or 
competing  line. 

SEC.  6.  No  railroad  company  organized  under  the  laws 
of  this  state  shall  consolidate  by  private  or  judicial  sale 
or  otherwise  with  any  railroad  company  organized  under 
the  laws  of  any  other  state  or  of  the  United  States. 

[Adopted,  November  24,  1875.] 

.   STATUTES. 

That  a  trust  is  a  combination  of  capital,  skill  or  acts 
by  two  or  more  persons,  firms,  corporations  or  associa- 
tions of  persons,  or  either  two  or  more  of  them,  for  either, 
any  or  all  of  the  following  purposes: 

1.  To  create  or  which  may  tend  to  create  or  carry  out 
restrictions  in  trade  or  commerce  or  aids  to  commerce  or 
in  the  preparation  of  any  product  for  market  or  trans- 
portation, or  to  create  or  carry  out  restrictions  in  the 
free  pursuit  of  any  business  authorized  or  permitted  by 
the  laws  of  this  state. 

2.  To  fix,  maintain,  increase  or  reduce  the  price  of 
merchandise,  produce  or  commodities,  or  the  cost  of  in- 
surance, or  of  the  preparation  of  any  product  for  market 
or  transportation. 

291 


292  LAWS   ON    TRUSTS   AISD   MONOPOLIES. 

3.  To  prevent  or  lessen  competition  in  the  manufac- 
ture, making,  transportation,  sale  or  purchase  of  mer- 
chandise, produce  or  commodities,  or  the  business  of  in- 
surance, or  to  prevent  or  lessen  competition  in  aids  to 
commerce,   or   in  the   preparation   of   any   product    for 
market  or  transportation. 

4.  To  fix  or  maintain  any  standard  or  figure  whereby 
the  price  of  any  article  or  commodity  of  merchandise, 
produce  or  commerce,  or  the  cost  of  transportation,  or 
insurance,  or  the  preparation  of  any  product  for  market 
or  transportation,  shall  be  in  any  manner  affected,  con- 
trolled or  established. 

5.  To  make,  enter  into,  maintain,  execute  or  carry  out 
any  contract,  obligation  or  agreement  by  which  the  par- 
ties thereto  bind,  or  have  bound  themselves  not  to  sell,  dis- 
pose of,  transport  or  to  prepare  for  market  or  transpor- 
tation any  article  or  commodity,  or  to  make  any  contract 
of  insurance  at  a  price  below  a  common  standard  or  fig- 
ure, or  by  which  they  shall  agree  in  any  manner  to  keep 
the  price  of  such  article  or  commodity  or  charge  for  trans- 
portation or  insurance,  or  the  cost  of  the  preparation  of 
any  product  for  market  or  transportation  at  a  fixed  or 
graded  figure,  or  by  which  they  shall  in  any  manner 
affect  or  maintain  the  price  of  any  commodity  or  article 
or  the  cost  of  transportation  or  insurance  or  the  cost  of 
the  preparation  of  any  product  for  market  or  transpor- 
tation between  them  or  themselves  and  others,  to  pre- 
clude a  free  and  unrestricted  competition  among  them- 
selves or  others  in  the  sale  or  transportation  of  any  such 
article  or  commodity  or  business  of  transportation  or  in- 
surance or  the  preparation  of  any  product  for  market 
or  transportation,  or  by  which  they  shall  agree  to  pool, 
combine  or  unite  any  interest  they  may  have  have  in  con- 
nection with  the  sale  or  purchase  of  any  article  or  com- 
modity  or   charge   for  transportation   or   insurance   or 
charge  for  the  preparation  of  any  product  for  market  or 
transportation  whereby  its  price  or  such  charge  might  be 
in  any  manner  affected. 

6.  To  regulate,  fix  or  limit  the  output  of  any  article  or 
commodity  which  may  be  manufactured,  mined,  produced 
or  sold,  or  the  amount  of  insurance  which  may  be  under- 
taken, or  the  amount  of  work  that  may  be  done  in  the 
preparation  of  any  product  for  market  or  transportation. 

7.  To  abstain  from  engaging  in  or  continuing  business 
or  from  the  purchase  or  sale  of  merchandise,  produce  or 


TEXAS.  293 

commodities  partially  or  entirely  within  the   State  of 
Texas,  or  any  portion  thereof. 

SEC.  2.  That  a  monopoly  is  a  combination  or  consolida- 
tion of  two  or  more  corporations  when  effected  in  either 
of  the  following  methods : 

1.  When  the  direction  of  the  affairs  of  two  or  more 
corporations  is  in  any  manner  brought  under  the  same- 
management  or  control  for  the  purpose  of  producing,  or 
where  such  common  management  or  control  tends  to  cre- 
ate a  trust  as  defined  in  the  first  section  of  this  act. 

2.  Where  any  corporation  acquires  the  shares  or  cer- 
tificates of  stock  or  bonds,  franchise  or  other  rights,  or 
the  physical  properties,  or  any  part  thereof,  of  any  other 
corporation  or  corporations,  for  the  purpose  of  prevent- 
ing or  lessening,  or  where  the  effect  of  such  acquisition 
tends  to  affect  or  lessen  competition,  whether  such  acqui- 
sition is  accomplished  directly  or  through  the  instrumen- 
tality of  trustees  or  otherwise. 

SEC.  3.  That  either  or  any  of  the  following  acts  shall 
constitute  a  conspiracy  in  restraint  of  trade : 

1.  Where  any  two  or  more  persons,  firms,  corporations 
or  associations  of  persons  who  are  engaged  in  buying  or 
selling  any  article  of  merchandise,  produce  or  any  com- 
modity, enter  into  an  agreement  or  understanding  to  re- 
fuse to  buy  from  or  sell  to  any  other  person,  firm,  cor- 
poration or  association  of  persons  any  article  of  mer- 
chandise, produce  or  commodity. 

2.  Where  any  two  or  more  persons,  firms,  corporations 
or    associations    of    persons    shall    agree    to   boycott   or 
threaten  to  refuse  to  buy  from  or  sell  to  any  person,  firm, 
corporation  or  association  of  persons  for  buying  from  or 
selling  to  any  other  person,  firm,  corporation  or  associa- 
tion of  persons. 

SEC.  4.  Any  and  all  trusts,  monopolies  and  conspiracies 
in  restraint  of  trade  as  herein  defined,  are  hereby  pro- 
hibited and  declared  to  be  illegal. 

SEC.  5.  Any  corporation  holding  a  charter  under  the 
laws  of  the  State  of  Texas,  which  shall  violate  any  of 
the  provisions  of  this  act,  shall  thereby  forfeit  its  charter 
and  franchise,  and  its  corporate  existence  shall  cease  and 
determine. 

SEC.  6.  For  a  violation  of  any  of  the  provisions  of  this 
Act,  or  any  anti-trust  laws  of  this  State,  by  any  corpora- 
tion, it  shall  be  the  duty  of  any  judge  or  court,  to  insti- 
tute suit  or  quo  warranto  proceedings  in  Travis  county, 


294  LAWS   ON   TRUSTS   AND   MONOPOLIES. 

or  at  the  county  seat  of  any  county  in  the  State  which  the 
Attorney  General  may  select,  for  the  forfeiture  of  its 
charter  rights  and  franchises,  and  the  dissolution  of  its 
corporate  existence,  and  for  such  purposes,  venue  is 
hereby  given  to  each  district  court  in  the  State  of  Texas. 
(As  amended  by  Acts  of  1909,  p.  281.) 
-  SEC.  7.  When  a  corporation  organized  under  the  laws 
of  this  state  shall  have  been  convicted  of  a  violation  of 
any  of  the  provisions  of  this  act,  and  its  charter  and 
franchise  has  been  forfeited,  as  provided  in  section  5,  no 
other  corporation  to  which  the  defaulting  corporation 
may  have  transferred  its  properties  and  business,  or 
which  has  assumed  the  payment  of  its  obligations,  shall 
be  permitted  to  incorporate  or  do  business  in  Texas. 

SEC.  8.  Every  foreign  corporation  violating  any  of  the 
provisions  of  this  act  is  hereby  denied  the  right,  and  is 
prohibited  from  doing  any  business  within  this  state,  and 
it  shall  be  the  duty  of  the  attorne}T-general  to  enforce  this 
provision  by  injunction  or  other  proceedings  in  the  dis- 
trict court  of  Travis  county,  in  the  name  of  the  State  of 
Texas. 

SEC.  9.  The  provisions  of  chapter  92  of  the  Revised 
Statutes  of  this  state  of  1895,  to  prescribe  the  remedy 
and  regulate  the  proceedings  by  quo  warranto,  etc.,  shall, 
except  in  so  far  as  they  conflict  herewith,  govern  and 
control  the  proceedings  when  instituted  to  forfeit  any 
charter  under  this  act. 

SEC.  10.  When  any  foreign  corporation  has  been  con- 
victed of  a  violation  of  any  of  the  provisions  of  this  act, 
and  its  right  to  do  business  in  this  state  has  been  for- 
feited, as  provided  in  section  8  of  this  act,  no  other  cor- 
poration to  which  the  defaulting  corporation  may  have 
transferred  its  properties  and  business,  or  which  has 
assumed  the  payment  of  its  obligations,  shall  be  per- 
mitted to  incorporate  or  do  business  in  Texas. 

SEC.  11.  Each  and  every  firm,  person,  corporation  or 
association  of  persons,  who  shall  in  any  manner  violate 
the  provisions  of  this  Act  shall  for  each  and  every  day 
that  such  violation  shall  be  committed  or  continued,  for- 
feit and  pay  a  sum  of  not  less  than  fifty  nor  more  than 
fifteen  hundred  xiollars,  which  may  be  recovered  in  the 
name  of  the  State  of  Texas,  in  the  district  court  of  any 
county  in  the  State  of  Texas,  and  venue  is  hereby  given 
to  such  district  courts;  provided,  that  when  any  such 
suit  shall  have  been  filed  in  any  county  and  jurisdiction 


TEXAS.  295 

thereof  acquired,  it  shall  not  be  transferred  to  any  other 
county  except  upon  change  of  venue  allowed  by  the  court, 
and  it  shall  be  the  duty  of  the  Attorney  General,  or  the 
district  or  county  attorney,  under  the  direction  of  the 
Attorney  General,  to  prosecute  for  the  recovery  of  the 
same,  and  the  fees  of  the  district  or  county  attorney  for 
representing  the  State  in  all  anti-trust  proceedings,  or 
for  the  collection  of  penalties  for  the  violation  of  the 
anti-trust  laws  of  this  State,  shall  be  ten  per  cent,  of  the 
amount  collected  up  to  and  including  the  sum  of  fifty 
thousand  dollars,  to  be  retained  by  him  when  collected, 
and  all  such  fees  wThich  he  may  collect  shall  be  over  and 
above  the  fees  allowed  under  the  general  fee  bill;  pro- 
vided, that  the  provisions  of  this  Act  as  to  the  fees  al- 
lowed the  prosecuting  attorney  shall  not  apply  to  any 
case  in  which  judgment  has  heretofore  been  rendered  in 
any  court  nor  to  any  moneys  to  be  hereafter  collected 
upon  any  such  judgment  heretofore  rendered  in  any  court, 
whether  such  judgment  or  judgments  are  pending  upon 
appeal  or  otherwise;  and  provided,  further,  that  the  dis- 
trict or  county  attorney  who  joins  in  the  institution  or 
prosecution  of  any  suit  for  the  recovery  of  penalties  for  a 
violation  of  any  of  the  anti-trust  laws  of  this  State,  who 
shall,  previous  to  the  collection  of  such  penalties,  cease 
to  hold  office,  he  shall  be  entitled  to  an  equal  division  with 
his  successor  of  the  fee  collected  in  said  cause,  and  in 
case  of  the  employment  of  special  counsel  by  any  such 
district  or  county  attorney,  the  contract  so  made  shall  be 
binding  upon  such  prosecuting  officer  making  such  con- 
tract and  thereafter  retiring  from  office;  provided,  fur- 
ther, that  in  case  an}'  suit  is  compromised  any  final  judg- 
ment in  the  trial  court  is  had,  then  the  fees  herein  pro- 
vided for  shall  be  reduced  one-half.  (As  amended  by 
Acts  of  1909,  pp.  281-2.) 

SEC.  12.  Any  contract  or  agreement  in  violation  of  the 
provisions  of  this  act  shall  be  absolutely  void  and  not 
enforcible  either  in  law  or  equity. 

SEC.  13.  And  in  addition  to  all  other  penalties  and  for- 
feitures herein  provided  for,  every  person  violating  the 
provisions  of  this  act  shall  be  further  punished  by  im- 
prisonment in  the  penitentiary  not  less  than  two  nor 
more  than  ten  years. 

SEC.  14.  In  prosecutions  for  the  violation  of  any  of  the 
provisions  of  this  act,  evidence  that  any  person  has  acted 
as  the  agent  of  a  corporation  in  the  transaction  of  its 


296  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

business  in  this  state  shall  be  received  as  prima  facie 
proof  that  his  act  in  the  name,  behalf  or  interest  of  the 
corporation  of  which  he  was  acting  as  the  agent,  was  the 
act  of  the  corporation. 

SEC.  15.  Upon  the  application  of  the  attorney-general 
or  of  any  of  his  assistants,  or  of  any  district  or  county 
attorney,  acting  under  the  direction  of  the  attorney-gen- 
eral, made  to  any  county  judge,  or  any  justice  of  the 
peace,  in  this  state,  stating  that  he  has  reason  to  believe 
that  a  witness,  who  is  to  be  found  in  the  county  in  which 
such  county  judge  or  justice  of  the  peace  is  an  officerr 
knows  of  a  violation  of  any  of  the  provisions  of  this  act, 
it  shall  be  the  duty  of  the  county  judge,  or  of  the  justice 
of  the  peace,  as  the  case  may  be,  before  whom  such  appli- 
cation is  made,  to  have  summoned  and  to  have  examined 
such  witness  in  relation  to  violations  of  any  of  the  pro- 
visions of  this  act,  said  witness  to  be  summoned  as  pro- 
vided for  in  criminal  cases.  The  said  witness  shall  be 
duly  sworn,  and  the  county  judge,  or  justice  of  the  peacey 
as  the  case  may  be,  shall  cause  the  statements  of  the  wit- 
ness to  be  reduced  to  writing  and  signed  and  sworn  to 
before  him,  such  sworn  statement  shall  be  delivered  to 
the  attorney-general,  his  assistants  or  the  district  or 
county  attorney,  upon  whose  application  the  witness  was 
summoned.  Should  the  witness  summoned  as  aforesaid 
fail  to  appear,  or  to  make  statements  of  the  facts  within 
his  knowledge,  under  oath,  or  to  sign  the  same  after  it 
has  been  reduced  to  writing,  he  shall  be  guilty  of  con- 
tempt of  court,  and  may  be  fined  not  exceeding  one  hun- 
dred dollars,  and  may  be  attached  and  imprisoned  in 
the  county  jail  until  he  shall  make  a  full  statement  of  all 
the  facts  within  his  knowledge  with  reference  to  the  mat- 
ter inquired  about.  Any  person  who  shall  testify  before 
any  county  judge,  or  justice  of  the  peace,  as  provided  for 
in  this  act,  or  who  shall  testify  as  a  witness  for  the  state 
in  the  course  of  any  statutory  proceeding  to  secure  testi- 
mony for  the  enforcement  of  this  act,  or  in  the  course  of 
any  judicial  proceeding  to  enforce  the  provisions  of  this 
act,  shall  not  be  subject  to  indictment  or  prosecution  for 
any  transaction,  matter  or  thing  concerning  which  he 
shall  so  give  evidence,  documentary  or  otherwise. 

SEC.  16.  All  actions  authorized  and  brought  under  this 
act  shall  have  precedence,  on  motion  of  the  prosecuting 
attorney  or  the  attorney-general,  of  all  other  business. 


TEXAS.  297 

civil  and  criminal,  except  criminal  cases  where  the  de- 
fendants are  in  jail. 

SEC.  17.  That  all  laws  and  parts  of  laws  in  conflict  with 
this  act  be  and  the  same  are  hereby  repealed,  and  that 
Title  CVIII  of  the  Revised  Civil  Statutes  of  the  State  of 
Texas  of  1895,  and  Arts.  5313,  5314, 5315, 5316, 5317, 5318, 
5319,  5320,  5321  and  5321a  thereof,  be  and  the  same  are 
hereby  expressly  repealed;  and  that  Arts.  976,  977,  978, 
979,  980,  981,  982,  983,  984,  985,  986,  987,  988,  988a,  988b, 
988c,  988d,  of  c.  7,  in  Title  XVIII,  of  the  Penal  Code 
of  the  State  of  Texas  of  1895,  be  and  the  same  are  hereby 
expressly  repealed;  and  that  an  act  entitled  "An  act  to 
define  trusts,  provide  for  penalties  and  punishment  of 
corporations,  persons,  firms  and  associations  of  persons 
connected  with  them,  and  promote  free  competition  in 
the  State  of  Texas,  and  to  repeal  all  laws  and  parts  of 
laws  in  conflict  with  this  act,"  approved  April  30,  1895. 
and  known  and  published  as  c.  83  of  the  General  Laws 
of  the  Twenty-fourth  Legislature,  be  and  the  same  is 
hereby  expressly  repealed;  and  that  an  act  entitled  "An 
act  to  prohibit  pools,  trusts,  monopolies  and  conspiracies 
to  control  business  and  prices  of  articles,  to  prevent  the 
formation  or  operation  of  pools,  trusts,  monopolies  and 
combinations  of  charters  of  corporations  that  violate  the 
terms  of  this  act,  and  to  authorize  the  institution  and 
prosecution  of  suits  therefor,"  approved  May  the  25th, 
1899,  and  published  and  known  as  Chapter  CXLVI  of 
the  General  Laws  of  the  Twenty-sixth  Legislature,  be 
and  the  same  are  hereby  expressly  repealed ;  and  that  an 
act  entitled  "An  act  to  amend  Art.  5318,  Title  108,  of  the 
Revised  Civil  Statutes  of  the  State  of  Texas,  prescribing 
penalties  against  trusts  and  conspiracies  against  trade," 
approved  June  5th,  1899,  and  known  as  Chapter  CLXXII 
of  the  General  Laws  of  the  Twenty-sixth  Legislature,  be 
and  the  same  is  hereby  expressly  repealed;  provided 
nothing  in  this  act  shall  be  held  or  construed  to  affect  or 
destroy  any  rights  of  the  State  of  Texas  to  recover  pen- 
alties or  forfeit  charters  of  domestic  corporations,  or 
prohibit  foreign  corporations  from  doing  business  in  this 
state,  for  acts  committed  before  this  act  takes  effect. 

SEC.  18.  If  any  person  shall  enter  into  an  agreement 
or  understanding  of  any  character  to  form  a  trust,  or 
to  form  a  monopoly  or  to  form  a  conspiracy  in  restraint 
of  trade  (as  these  offenses  are  defined  by  Chapter  XCIV 
of  the  Acts  of  the  Twenty-eighth  Legislature,  which 


298  LAWS   ON   TKUSTS  AND   MONOPOLIES. 

chapter  this  act  amends) ,  or  shall  form  a  trust,  monopoly 
or  conspiracy  in  restraint  of  trade,  or  shall  be  a  party  to 
the  formation  of  a  trust,  or  monopoly,  or  conspiracy  in 
restraint  of  trade,  or  shall  become  a  party  to  a  trust,  or 
monopoly  or  conspiracy  in  restraint  of  trade,  or  shall  do 
any  act  in  furtherance  of,  or  aid  to,  such  trust  or  monop- 
oly or  conspiracy  in  restraint  of  trade,  he  shall  be  pun- 
ished by  imprisonment  in  the  penitentiary  for  a  period  of 
not  less  than  two  years,  nor  more  than  ten  years.  If  any 
person  shall,  as  a  member,  agent,  employee,  officer,  di- 
rector or  stockholder  of  any  business,  firm,  corporation 
or  association  of  persons,  form,  in  violation  of  the  provi- 
sions of  Chapter  XCIV  of  the  Acts  of  the  Twenty-eighth 
Legislature,  which  chapter  this  act  amends,  or  shall  oper- 
ate in  violation  of  the  provisions  of  this  act  any  such  busi- 
ness, firm,  corporation  or  association  formed  in  violation 
of  Chapter  XCIV  of  the  Acts  of  the  Twenty-eighth 
Legislature,  which  chapter  this  act  amends,  or  shall 
make  any  sale,  or  purchase,  or  any  other  contract,  or  do 
business  for  such  business,  firm,  corporation  or  associa- 
tion, or  shall  do  any  other  act  which  has  the  effect  of 
violating  or  aiding  in  the  violation  of  the  provisions  of 
Chapter  XCIV  of  the  Acts  of  the  Twenty-eighth  Legis- 
lature, which  chapter  this  act  amends,  he  shall  be  pun- 
ished by  confinement  in  the  penitenaitry  for  a  period  of 
not  less  than  two  years  nor  more  than  ten  years.  If  any 
person  shall  outside  of  this  state  do  anything  which  if 
done  within  this  state  would  constitute  the  formation  of 
a  trust,  or  monopoly,  or  conspiracy  in  restraint  of  trade, 
and  shall  cause  or  permit  the  trust  or  monopoly  so 
formed  by  him  to  do  business  within  this  state,  or  shall 
cause  or  permit  such  trust,  monopoly  or  conspiracy  in 
restraint  of  trade  to  have  any  operation  or  effect  within 
this  state,  or  if  such  trust,  monopoly  or  conspiracy  in 
restraint  of  trade,  having  been  formed  outside  of  this 
state,  any  person  shall  give  effect  to  such  trust,  monopoly 
or  conspiracy  in  this  state,  or  shall  do  anything  to  help 
or  aid  it  in  doing  business  in  this  state,  or  otherwise  vio- 
late the  antitrust  laws  of  this  state,  or  if  any  person  shall 
buy  or  sell,  or  otherwise  make  contracts  for  or  aid  any 
other  business  for-£ny  business  firm,  corporation  or  asso- 
ciation of  persons,  formed  or  operated  in  violation  of  the 
provisions  of  Chapter  XCIV  of  the  Acts  of  the  Twenty- 
eighth  Legislature,  which  chapter  this  act  amends,  or  so 
formed  or  operated  as  would  be  in  violation  of  the  laws 


TEXAS.  299 

of  this  state,  if  it  had  been  formed  within  this  state,  shall 
be  punished  by  confinement  in  the  penitentiary  for  a 
period  of  not  less  than  two  years  nor  more  than  ten  years. 
If  any  person  or  employee  or  employees,  or  agent  or 
agents,  stockholder  or  stockholders,  officer  or  officers,  of 
any  person,  firm,  association  of  persons,  or  corporations 
now  doing  business  in  this  state,  who  has  formed  a  trust 
as  defined  in  Chapter  XCIV  of  the  Acts  of  the  Twenty- 
eighth  Legislature,  which  act  this  chapter  amends,  or 
formed  a  monopoly  as  defined  in  Chapter  XCIV  of  the 
Acts  of  the  Twenty-eighth  Legislature,  which  chapter 
this  act  amends,  or  has  formed  a  conspiracy  in  restraint 
of  trade  as  defined  in  Chapter  XCIV  of  the  Acts  of  the 
Twenty-eighth  Legislature,  which  chapter  this  act 
amends,  shall  do  or  perform  any  act  of  any  character  to 
carry  out  such  trust,  monopoly  or  conspiracy  in  restraint 
of  trade,  such  person,  employee  or  employees,  agent  or 
agents,  stockholder  or  stockholders,  officer  or  officers  shall 
be  punished  by  confinement  in.  the  penitentiary  for  not 
less  than  two  years  nor  more  than  ten  years. 

SEC.  18.  Criminal  prosecutions  under  this  act  may  be 
conducted  in  Travis  county,  Texas,  or  in  any  county  in 
this  state  wherein  a  trust  or  conspiracy  in  restraint  of 
trade  is  being  carried  on,  a  recovery  or  prosecution 
against  any  person  for  any  violation  of  this  act,  or  shall, 
with  the  intent  or  purpose  of  driving  out  competition,  or 
for  the  purpose  of  financially  injuring  competitors,  sell 
within  this  state  at  less  than  cost  of  manufacture  or  pro- 
duction, or  sell  in  such  a  way,  or  give  away  within  this 
state  products  for  the  purpose  of  driving  out  competition 
or  financially  injuring  competitors  engaged  in  a  similar 
business,  or  give  secret  rebates  on  such  purchase  for  the 
purpose  aforesaid,  shall  not  bar  a  prosecution  of  or  re- 
covery against  any  other  person  or  persons  for  the  same 
offense. 

SEC.  19.  If  any  person  shall  enter  into  an  agreement 
or  understanding  of  any  character  to  form  a  trust,  or  to 
form  a  monopoly,  or  to  form  a  conspiracy  in  restraint  of 
trade  as  these  offenses  are  defined  by  Chapter  XCIV  of 
the  Acts  of  the  Twenty-eighth  Legislature,  or  shall  form 
a  trust,  monopoly  or  conspiracy  in  restraint  of  trade,  or 
shall  be  a  party  to  the  formation  of  a  trust  or  monopoly 
or  conspiracy  in  restraint  of  trade,  or  shall  become  a 
party  to  a  trust  or  monopoly  or  conspiracy  in  restraint 
of  trade,  or  shall  do  any  act  in  furtherance  of  or  aid  to 


LAWS    OX    TRUSTS   AND   MONOPOLIES. 

such  trust  or  monopoly  or  conspiracy  in  restraint  of 
trade,  he  shall  be  punished  by  imprisonment  in  the  peni- 
tentiary  for  a  period  of  not  less  than  two  years  nor  more 
than  ten  years. 

If  any  person  shall,  as  a  member,  agent,  employee,  offi- 
cer, director  or  stockholder  of  any  business,  firm,  corpora- 
tion or  association  of  persons,  form,  in  violation  of  the 
provisions  of  Chapter  XCIV  of  the  Acts  of  the  Twenty- 
eighth  Legislature,  or  shall  operate  in  violation  of  the 
provisions  of  this  act  any  such  business,  firm,  corporation 
or  association  formed  in  violation  of  Chapter  XCIV  of 
the  Acts  of  the  Twenty-eighth  Legislature,  or  shall  make 
any  sale,  or  purchase,  or  any  other  contract,  or  do  busi- 
ness for  such  business,  firm,  corporation  or  association, 
or  shall  do  any  other  act  which  has  the  effect  of  violating 
or  aiding  in  the  violation  of  the  provisions  of  Chapter 
XCIV  of  the  Acts  of  the  Twenty-eighth  Legislature,  or 
shall  with  the  intent  or  purpose  of  driving  out  competi- 
tion or  for  the  purpose  of  financially  injuring  competi- 
tors sell  within  this  state  at  less  than  cost  of  manu- 
facture or  production  or  sell  in  such  a  way  or  give  away 
within  this  state  products  for  the  purpose  of  driving  out 
competition  or  financially  injuring  competitors  engaged 
in  a  similar  business,  or  give  secret  rebates  on  such  pur- 
chase for  the  purpose  aforesaid,  he  shall  be  punished  by 
confinement  in  the  penitentiary  for  a  period  of  not  less 
than  two  years  nor  more  than  ten  years. 

If  any  person  shall  outside  of  this  state  do  anything 
which,  if  done  within  this  state,  would  constitute  the 
formation  of  a  trust  or  monopoly  or  conspiracy  in  the 
restraint  of  trade  as  defined  by  Chapter  XCIV,  p.  119, 
of  the  Acts  of  the  Twenty-eighth  Legislature,  and  shall 
cause  or  permit  the  trust  or  monopoly  so  formed  by  him 
to  do  business  within  this  state,  or  shall  cause  or  permit 
such  trust,  monopoly  or  conspiracy  in  restraint  of  trade 
to  have  any  operation  or  effect  within  this  state,  or  if 
such  trust,  monopoly  or  conspiracy  in  restraint  of  trade 
having  been  formed  outside  of  said  state,  any  person 
shall  give  effect  to  such  trust,  monopoly  or  conspiracy  in 
this  state,  or  he  shall  do  anything  to  help  or  aid  it  doing 
business  in  this  state,  or  otherwise  violate  the  anti-trust 
laws  of  this  state,  or  if  any  person  shall  buy  or  sell  or 
otherwise  make  contracts  for  or  aid  any  business,  firm, 
corporation  or  association  of  persons,  formed  or  oper- 
ated in  violation  of  the  provisions  of  Chapter  XCIV, 


TEXAS.  301 

p.  119,  of  the  Acts  of  the  Twenty-eighth  Legislature,  or 
so  formed  or  operated  as  would  be  in  violation  of  the 
laws  of  this  state  if  it  had  been  formed  within  this  state, 
shall  be  punished  by  confinement  in  the  penitentiary  for 
a  period  of  not  less  than  two  years  nor  more  than  ten 
years. 

If  any  person  or  employee  or  employees,  or  agent  or 
agents,  stockholder  or  stockholders,  officer  or  officers  of 
any  person,  firm,  association  of  persons  or  corporation 
now  doing  business  in  this  state,  who  have  formed  a 
trust  as  defined  in  Chapter  XCIV,  p.  119,  of  the  Acts  of 
the  Twenty-eighth  LegHatnre,  or  formed  a  monopoly 
as  defined  in  Chapter  XCIV,  p.  119,  of  the  Acts  of  the 
Twenty-eighth  Legislature,  or  has  formed  a  conspiracy 
in  restraint  of  trade,  as  defined  in  Chapter  XCIV,  p. 
119,  of  the  Acts  of  the  Twenty-eighth  Legislature,  or. 
shall  do  or  perform  any  act  of  any  character  to  carry  out 
such  trust,  monopoly  or  conspiracy  in  restraint  of  trade, 
such  person,  employee  or  employees,  agent  or  agents, 
stockholder  or  stockholders,  officer  or  officers  shall  be 
punished  by  confinement  in  the  penitentiary  for  not  less 
than  two  years  nor  more  than  ten  years. 

SEC.  20.  Criminal  prosecutions  under  this  act  may  be 
conducted  in  Travis  county,  Texas,  or  in  any  county  in 
this  state  wherein  a  trust,  monopoly  or  conspiracy  in 
restraint  of  trade  is  being  carried  on,  a  recovery  or  prose- 
cution against  any  person  for  any  violation  of  this  act 
shall  not  bar  a  prosecution  of  or  recovery  against  any 
other  person  or  persons  for  the  same  offense. 

SEC.  21.  Prosecutions  under  this  act  may  be  instituted 
and  prosecuted  by  any  county  or  district  attorney  of 
this  state,  and  when  any  such  prosecutions  have  been  in- 
stituted by  any  county  or  district  attorney,  such  officer 
shall  forthwith  notify  the  attorney-general  of  such  fact, 
and  it  is  hereby  made  the  duty  of  the  attorney-general, 
when  he  shall  receive  such  notice,  to  join  such  officer  in 
such  prosecution  and  do  all  in  his  power  to  secure  the 
enforcement  of  this  act. 

SEC.  22.  For  every  conviction  obtained  under  the  pro- 
visions of  this  act,  the  state  shall  pay  to  the  county  or 
district  attorney  in  such  prosecution  the  sum  of  $250,  and 
if  both  the  county  and  district  attorney  shall  serve  to- 
gether in  such  prosecution,  such  fee  shall  be  divided  be- 
tween them  as  follows:  $100  to  the  county  attorney  and 
$150  to  the  district  attorney. 


302  LAWS   ON    TRUSTS  AND  MONOPOLIES. 

SEC.  23.  That  this  act  shall  not  repeal,  modify  or  in  any 
manner  affect  said  Chapter  XCIV,  p.  119,  of  the  Acts 
of  the  Twenty-eighth  Legislature,  or  any  section  or  pro- 
visions thereof,  and  this  act  is  and  is  intended  to  be 
cumulative  of  said  Chapter  XCIV  of  the  Acts  of  the 
Twenty-eighth  Legislature  of  Texas. 

(G.  L.  of  1903,  28th  Legislature,  chapter  XCIV,  p.  119. 
as  amended  by  G.  L.  of  1907,  amending  Sec.  13,  p.  194; 
Sees.  15,  221 ;  Sees.  18,  19,  20  and  21  added  by  G.  L.  of 
1907,  p.  322,  and  as  amended  by  G.  L.  of  1907.  p.  456 ; 
G.  L.  of  1909,  p.  281.) 

MISCELLANEOUS   ANTI-TRUST  LAWS. 

Procedure  ~by  which  evidence  may  be  taken  against  trusts. 

SECTION  1.  Whenever  any  suit  shall  be  instituted  or  is 
pending  in  any  court  of  competent  jurisdiction  in  this 
state,  by  the  attorney-general  or  by  any  district  or  county 
attorney,  acting  under  his  direction  against  any  corpora- 
tion, or  corporations,  individual  or  individuals,  or  asso- 
ciation of  individuals,  or  joint  stock  associations,  or  co- 
partnerships under  any  law  of  this  state,  against  trusts, 
monopolies  or  conspiracies  in  restraint  of  trade,  or  under 
any  laws  of  this  state  regulating  or  controlling  corpora- 
tions, domestic  or  foreign,  the  attorney-general,  district 
or  county  attorney,  as  the  case  may  be,  may.  in  addition 
to  the  means  now  provided  by  law,  examine  and  procure 
the  testimony  or  evidence  of  Avitnesses  and  have  books, 
papers  and  documents  produced  as  evidence,  in  the  man- 
ner herein  provided. 

SEC.  2.  Whenever  any  action  is  commenced  or  is  pend- 
ing, as  contemplated  in  section  1  of  this  act,  by  the  at- 
torney-general, or  by  any  district  or  county  attorney, 
acting  under  his  direction,  and  said  officer  representing 
the  state,  either  upon  trial  of  the  case,  or  in  preparation 
for  the  trial  thereof,  desires  to  take  the  testimony  of  any 
officer,  director,  agent  or  employee  of  any  foreign  or  do- 
mestic corporation,  or  joint  stock  association  proceeded 
against,  or  in  case  of  any  copartnership,  any  member 
thereof,  or  in  case  of  any  individual  or  individuals,  either 
of  them,  and  the  person  or  persons  whose  testimony  is 
desired,  resides  either  within  or  without  the  State  of 
Texas,  the  said  officer  shall  file  in  said  court  where  the 
action  is  brought,  either  in  term  time  or  in  vacation,  or 


TEXAS.  303 

with  any  special  commissioner  who  may  be  appointed  by 
the  court  to  take  testimony,  as  provided  for  in  this  act,  a 
statement  in  writing  setting  forth  the  name  or  names  and 
residence  of  the  person  or  persons  whose  testimony  he 
desires  to  take,  and  in  a  general  way  shall  designate  any 
books,  papers  or  documents  he  desires  produced,  and  the 
time  when  and  place  where,  either  within  or  without  this 
state,  he  desires  such  person  to  appear  and  testify,  or  to 
produce  books,  papers  and  documents,  if  any  are  desired ; 
and  thereupon  the  judge  of  said  court,  or  the  commis- 
sioner, as  the  case  may  be,  before  whom  said  testimony  is 
being  or  shall  be  taken,  shall  immediately  issue  a  notice 
in  writing,  directed  to  the  attorney  or  attorneys  of  record, 
in  said  cause,  or  the  agent,  officer  or  employee  of  any  cor- 
poration or  joint  stock  association,  or  directed  to  the  at- 
torney or  attorneys  of  record  of  any  copartnership,  in- 
dividual or  individuals,  or  to  any  member  of  such  copart- 
nership, or  to  any  individual  or  individuals  who  are  de- 
fendant or  defendants  in  said  action,  notifying  said 
attorney  or  attorneys  of  record,  or  officer,  agent,  or  em- 
ployee, aforesaid,  or  member  or  members  of  any  copart- 
nership, or  individual  as  herein  provided,  that  the  testi- 
mony of  the  person  or  persons,  named  in  said  notice,  is 
desired,  and  requiring  said  attorney  or  attorneys  of 
record,  or  such  officer,  agent,  or  employee  aforesaid,  or 
member  of  such  copartnership,  or  any  individual  to  whom 
said  notice  is  delivered,  or  upon  whom  the  same  is  served, 
to  notify  and  have  said  witness  or  witnesses  whose  testi- 
mony or  evidence  it  is  desired  to  take,  at  the  place  named 
in  said  notice,  at  the  time  fixed  therein,  before  the  court 
or  special  commissioner  named,  then  and  there  to  testify, 
and  then  and  there  to  have  and  produce  such  books, 
papers  and  documents  as  are  called  for,  and  for  any  of 
the  purposes  herein  provided;  provided,  that  if  the  tak- 
ing of  such  evidence  be  not  concluded  on  the  day  and 
date  specified  in  said  notice,  the  court  or  the  commis- 
sioner, as  the  case  may  be,  may  continue  the  taking  of 
same  from  day  to  day,  or  adjourn  from  day  to  day,  at 
the  same  place,  until  the  taking  of  such  evidence  has  been 
concluded. 

SEC.  3.  Whenever  any  officer,  director,  agent  or  em- 
ployee of  any  foreign  or  domestic  corporation  or  joint 
stock  association,  authorized  to  do  business  in  this  state, 
or  a"ny  member  of  any  copartnership  or  any  individual, 
against  whom  suit  has  been  filed,  or  is  pending,  as  pro- 


304  LAWS   ON    TKUSTS  AND   MONOPOLIES. 

vided  for  in  this  act,  or  the  attorney  or  attorneys  of 
record  of  any  such  corporation,  joint  stock  association, 
copartnership  or  individual,  shall  be  notified  in  accord- 
ance with  the  provisions  of  this  act,  that  any  of  the  books, 
papers  or  documents  belonging  to  such  corporation,  joint 
stock  association,  copartnership  or  individual  are  wanted 
before  the  court,  or  special  commissioner,  as  provided  in 
this  act,  it  shall  be  the  duty  of  such  defendant  corpora- 
tion, joint  stock  association,  copartnership  or  individual, 
as  the  case  may  be,  to  produce  and  present,  or  cause  to  be 
produced  and  presented,  as  required  in  said  notice,  all 
such  books,  papers  and  documents  belonging  to  any  such 
defendant  or  under  such  defandent's  control  as  may  be 
specified  in  said  notice,  in  court  or  before  said  special 
commissioner,  at  the  time  and  place  so  specified,  and  in 
the  event  of  the  failure  or  refusal  of  any  such  corpora- 
tion, joint  stock  association,  copartnership  or  individual 
to  comply  with  any  of  the  provisions  of  this  section,  it 
shall  be  the  duty  of  the  court,  upon  the  motion  of  the 
officer  representing  the  state,  to  strike  out  all  the  plead- 
ings, answers,  motions,  reply  or  demurrer  theretofore  or 
thereafter  filed  in  such  case  by  such  defendant,  corpora- 
tion, joint  stock  association,  copartnership  or  individual, 
as  "the  case  may  be,  and  render  judgment  by  default 
against  any  such  defendant. 

SEC.  4.  Whenever  any  attorney  or  attorneys  of  record, 
or  any  agent,  officer,  employee  of  any  corporation  or  joint 
stock  association  proceeded  against,  as  herein  provided, 
shall  be  notified  that  any  officer,  director,  agent  or  em- 
ployee of  any  such  corporation  or  joint  stock  association 
is  wanted  before  said  court,  or  any  special  commissioner. 
as  provided  herein,  to  give  his  testimony  or  to  produce 
any  such  books,  papers  or  documents  of  said  corporation 
or  joint  stock  association,  as  the  case  may  be,  or  if  any 
attorney  or  attorneys  of  record  of  any  copartnership  or 
individual  shall  be  notified  that  any  member  or  members 
of  said  copartnership,  or  any  individual,  who  are  de- 
fendants in  any  such  action  are  desired  as  witnesses,  or 
to  produce  books,  papers  or  documents,  before  any  court 
or  before  any  special  commissioner  appointed  to  take 
testimony  in  said  proceeding,  as  herein  provided ;  it  shall 
be  the  duty  of  such  attorney  or  attorneys  of  record,  or 
any  such  officer,  director,  agent  or  employee  to  immedi- 
ately notify  any  such  person  of  the  time  and  place  where 
he  shall  attend  and  give  his  testimony,  or  produce  any 


TEXAS.  305 

such  books,  papers  or  documents,  if  any  are  desired ;  and 
if  the  person  or  persons  whose  testimony  is  desired,  as 
herein  provided,  shall  fail  to  appear,  or  appearing  shall 
refuse  to  testify  or  shall  fail  to  produce  whatever  books, 
papers  or  documents  he  or  they  may  be  ordered  to  pro- 
duce, as  before  provided,  then  it  shall  be  the  duty  of  the 
court,  upon  motion  of  the  attorney-general,  district  or 
county  attorney,  as  the  case  may  be,  on  proof  of  such 
refusal,  failure  or  dereliction  to  strike  out  the  answer, 
motion,  reply,  demurrer  or  other  pleading  theretofore  or 
thereafter  filed  in  such  action,  by  said  delinquent  defend- 
ant, who  has  himself,  or  being  a  corporation  or  joint 
stock  association,  whose  officer,  agent,  director  or  em- 
ployee, as  herein  provided,  has  refused  or  failed  to 
attend  and  testify,  or  to  produce  all  books,  papers  or 
documents  demanded,  which  were  in  the  custody  or  sub- 
ject to  the  control  of  such  witness  or  witnesses,  or  cor- 
poration or  joint  stock  association;  and  said  court  shall, 
in  the  event  of  any  such  refusal  or  failure,  proceed  to 
render  judgment  by  default  against  any  such  defendant; 
provided,  however,  that  if  any  such  defendant  shall  file 
a  sworn  denial  in  writing,  in  said  court,  setting  forth 
that  such  failure  or  refusal  did  not  arise  by  reason  of 
any  fault  or  procurement  of  defendant,  the  court  shall 
hear  evidence  upon  that  issue,  and  if  the  defendant  shows 
to  the  satisfaction  of  the  court  that  any  witness  who 
failed  to  attend  did  not  do  so  at  the  instance  or  pro- 
curement of  said  defendant,  or  that  the  books,  papers  or 
documents  demanded  were  not  in  its  possession  or  con- 
trol and  could  not  be  produced,  and  that  such  defendant 
had  complied  with  all  the  provisions  of  this  act,  within 
such  defendant's  power  to  perform,  then  in  that  event 
the  answer,  motion,  reply,  demurrer  or  other  pleadings 
shall  not  be  stricken  out  or  judgment  by  default  taken 
because  of  the  failure  of  the  witness  to  attend,  who  could 
not  be  so  procured,  or  because  of  the  failure  to  produce 
the  books,  papers  or  documents  not  in  the  possession  or 
under  the  control  of  such  defendant;  but  the  court  shall 
have  the  power  to  enter  such  further  orders  in  respect 
to  the  matter  in  controversy  as  it  may  deem  necessary  for 
the  proper  administration  of  justice;  provided  further, 
that  in  any  proceeding  had  before  a  special  commissioner, 
as  herein  provided,  the  certificate  of  the  special  commis- 
sioner showing  the  failure  or  refusal  of  any  such  witness 
or  witnesses  to  appear  and  testify,  or  to  produce  any 

16491—13 20 


306  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

books,  papers  or  documents  desired,  shall  be  sufficient 
prima  facie  evidence  of  such  failure,  refusal  or  dereliction 
on  the  part  of  any  such  defendant,  when  same  is  filed  in 
court.  Any  witness  attending  any  proceeding  herein  pro- 
vided for  in  compliance  with  any  notice  or  subpoena 
issued  by  authority  of  this  act,  shall  receive  as  compensa- 
tion one  dollar  per  day  for  each  day  of  his  attendance, 
and  four  cents  per  mile  traveled  computed  upon  the  short- 
est practicable  route ;  any  claim  for  fees  and  mileage  shall 
be  filed  with  the  court,  or  special  commissioner,  and 
sworn  to  by  said  witness,  and  shall  be  taxed  up  as  costs 
and  collected  as  other  costs  in  civil  cases. 

SEC.  5.  The  court,  or  presiding  judge  thereof,  in  wThich 
any  proceeding  as  herein  provided  is  pending,  in  term 
time  or  in  vacation,  upon  application  therefor,  made  by 
the  attorney-general,  or  district  or  county  attorney,  act- 
ing under  his  direction,  shall  appoint  some  well  qualified 
disinterested  person  as  special  commissioner,  to  take  testi- 
mony, in  any  such  case,  at  any  point  either  within  or 
without  the  state,  as  designated  in  such  application,  or 
where  requested  by  either  party  to  said  cause  of  action, 
upon  the  issues  joined  in  said  cause,  such  special  com- 
missioner shall  have  full  power  and  authority  to  issue 
notices  provided  for  in  section  2  of  this  act,  and  to  issue 
subpoenas  for  witnesses,  compelling  the  attendance  of 
such  witnesses,  the  production  of  books,  papers  or  docu- 
ments, to  issue  attachments,  to  punish  for  contempt  to 
the  same  extent  as  provided  by  law  for  said  court;  to 
administer  oaths  to  witnesses;  to  have  all  witnesses  ex- 
amined orally,  which  testimony  shall  be  reduced  to  writ- 
ing and  may  be  taken  down  by  a  competent  stenographer 
and  transcribed,  and  shall  be  signed  and  sworn  to  by  said 
witness.  The  person  appointed  as  special  commissioner 
in  any  case  shall  qualify  by  taking  oath  prescribed  by 
the  constitution  of  this  state  for  officers,  and  shall,  with 
all  convenient  speed,  certify  and  return  the  testimony 
taken  by  him  to  the  court  appointing  him ;  and  said  com- 
missioner shall  note  all  objections  to  testimony,  and  shall 
not  exclude  any  testimony,  and  all  questions  as  to  the 
materiality  or  admissibility  of  same  shall  be  reserved  for 
the  court  trying  "the  case,  and  such  testimony  so  taken 
may  be  read  in  evidence  upon  the  trial  of  the  suit  in 
which  same  was  taken,  subject  to  any  legal  objections 
which  might  be  made  to  same.  The  compensation  of  such 


TEXAS.  307 

commissioner  shall  be  his  actual  expenses  in  traveling 
and  such  fees  as  are  allowed  a  notary  public  in  taking 
depositions,  to  be  taxed  up  as  costs  and  collected  in  the 
same  manner  as  now  provided  by  law  for  district  clerks 
in  civil  cases. 

SEC.  6.  When  any  notice  is  issued  and  served,  as  pro- 
vided for  in  this  act,  ten  full  daj7s  exclusive  of  the  day 
of  service  shall  elapse  before  any  witness  so  requested 
shall  be  compelled  to  appear  and  testify,  or  produce  any 
books,  papers  or  documents  called  for,  and  if  the  taking 
of  testimony  shall  not  be  concluded  on  the  date  named  in 
said  notice,  the  witness  or  witnesses  shall  remain  in  at- 
tendance from  day  to  day  until  the  same  is  completed  or 
said  witness  is  finally  discharged  by  the  court,  or  com- 
missioner, as  the  case  may  be;  service  of  said  notice  and 
the  return  thereon  may  be  made  by  any  sheriff  or  con- 
stable of  this  state,  or  by  any  disinterested  person  com- 
petent to  make  oath  of  the  fact,  and  shall  be  made  by 
said  person  executing  the  same,  by  delivering  to  the  per- 
son or  persons,  attorney  or  attorneys  to  be  served  a  true 
copy  of  such  notice,  and  return  of  such  service  shall  be 
endorsed  on  or  attached  to  the  original  notice;  it  shall 
state  when  the  same  was  served  and  the  manner  of  service, 
and  upon  whom  served,  and  shall  be  signed,  and  if  served 
by  any  person  other  than  an  officer,  shall  be  sworn  to  by 
the  party  making  the  service  before  some  officer  author- 
ized by  law  to  take  affidavits,  and  such  affidavit  shall  be 
certified  under  the  hand  and  official  seal  of  such  officer. 

SEC.  7.  Any  witness  for  the  state  who  shall  testify  or 
produce  any  books,  papers  or  documents  in  any  proceed- 
ing or  examination  under  the  provisions  of  this  act  shall 
not  be  subject  to  indictment  or  prosecution  for  any 
transaction,  matter  or  thing  concerning  which  he  truth- 
fully testifies  or  produces  evidence,  documentary  or  other- 
wise. 

SEC.  8.  The  provisions  of  this  act  shall  be  cumulative 
of  all  laws  of  this  state,  and  shall  not  be  construed  as 
repealing  any  other  law  relating  to  the  taking  of  testi- 
mony or  evidence;  but  shall  be  construed  as  providing  an 
additional  means  of  securing  evidence  for  the  enforce- 
ment of  the  laws,  as  herein  provided.  (G.  L.  of  1907, 
p.  16.) 


308  LAWS    OX    TRUSTS   AND   MONOPOLIES. 

STATUTE    RELATING    TO    FINES,    PENALTIES    AND    FORFEITURES 
DUE  THE  STATE  OF  TEXAS. 

SECTION  1.  Whenever  any  corporation  created  under  the 
laws  of  this  state,  or  airy  foreign  corporation  authorized 
to  do  business  in  this  state,  shall  violate  any  law  of  this 
state,  including  any  law  against  trusts,  monopolies  and 
conspiracies,  or  combinations  or  contracts  in  restraint  of 
trade,  for  the  violation  of  which  fines  or  penalties  or  for- 
feitures are  provided,  all  property  of  such  corporation 
within  this  state  at  the  time  of  such  violation,  or  which 
may  thereafter  come  within  this  state,  shall,  by  reason 
of  such  violation,  become  liable  for  such  fines  or  penalties 
and  for  all  costs  of  suit  and  of  collection,  and  the  state 
of  Texas  shall  have  a  lien  on  all  such  property  from  the 
date  that  suit  shall  be  instituted  by  the  attorney  general 
or  district  or  county  attorney  acting  under  his  direction 
in  any  court  of  competent  jurisdiction  within  this  state 
for  the  purpose  of  forfeiting  the  charter  or  canceling  the 
permit  of  such  corporation,  or  for  such  fines  or  penalties. 
The  institution  of  such  suit  for  such  fine,  penalties  or  for- 
feiture shall  constitute  notice  of  such  lien.  Where  any 
such  law  has  heretofore  been  violated,  or  shall  be  vio- 
lated before  the  taking  effect  of  this  act,  and  a  cause  of 
action  exists  for  such  fine,  penalties  or  forfeiture,  or  shall 
come  into  existence  before  the  taking  effect  of  this  act, 
and  suit  shall  be  filed  in  such  case,  the  state  shall  have  a 
lien  to  secure  the  payment  of  such  fine,  penalties  and  costs 
from  the  time  this  act  shall  take  effect  on  all  property 
of  such  corporation  within  this  state  of  which  shall  there- 
after become  or  be  brought  within  the  state. 

SEC.  2.  Any  action  or  cause  of  action  for  any  fine,  for- 
feiture or  penalty  that  the  state  of  Texas  has  or  may  have 
against  any  corporation  chartered  under  the  laws  of  this 
or  any  other  state,  territory  or  nation,  shall  not  abate  or 
become  abated  by  reason  of  the  dissolution  of  such  cor- 
poration, whether  voluntary  or  otherwise,  or  by  the  for- 
feiture of  its  charter.  Whenever  a  corporation  against 
which  the  state  has  heretofore  instituted  suit,  or  shall 
hereafter  institute  suit,  for  forfeiture  of  its  charter,  or 
cancellation  of  its  permit,  or  for  fines  or  penalties  under 
any  law  of  this  state,  shall  dissolve  in  this  or  any  other 
state,  or  shall  have  a  judgment  rendered  against  it  in 
this  or  any  other  state,  for  the  forfeiture  of  its  charter, 
the  court  in  this  state  in  which  such  suit  is  pending  shall 


TEXAS.  309 

appoint  a  receiver  for  the  property  and  business  of  such 
corporation  within  this  state  or  that  may  come  or  be 
brought  within  this  state  during  such  receivership,  or  the 
court  may,  in  any  case  wherein  the  state  is  suing  any  such 
corporation  for  the  forfeiture  of  its  charter,  or  of  its 
permit  to  do  business  in  this  state,  or  for  fines  or  penal- 
ties, appoint  a  receiver  for  such  corporation,  whenever 
the  interest  of  the  state  may  seem  to  require  such  action. 
If  such  dissolution  shall  take  place  or  judgment  of  for- 
feiture be  rendered  against  such  corporation  before  this 
act  takes  effect,  the  court  shall,  upon  the  taking  effect  of 
this  act,  appoint  a  receiver  for  the  property  and  business 
of  such  corporation  in  this  state ;  and  the  state  shall  have . 
the  right  to  the  writs  of  attachment,  garnishment,  se- 
questration or  injunction,  without  bond,  to  aid  in  the 
enforcement  of  its  rights  created  by  this  act;  and  all 
property  that  may  come  into  the  possession  of  any  re- 
ceiver appointed  under  the  provisions  of  this  act,  not 
otherwise  exempt  by  law,  shall  be  subject  to  the  lien 
herein  created,  and  for  the  payment  of  any  such  fine  or 
penalty. 

SEC.  3.  The  attorney-general,  or  any  district  or  county 
attorney  acting  under  his  direction,  may  bring  suit  in 
the  name  of  the  State  of  Texas  for  the  foreclosure  of  such 
lien  in  the  district  court  of  any  county  in  the  State  of 
Texas,  and  in  case  the  suit  for  foreclosure  should  be 
brought  against  any  corporation  which  has  dissolved  or 
had  a  judgment  for  the  forfeiture  of  its  charter  or  the 
cancellation  of  its  permit  rendered  .against  it.  pending 
any  suit  by  the  State  of  Texas  against  such  corporation 
for  the  forfeiture  of  its  charter  or  cancellation  of  its 
permit  or  for  penalties  or  fines,  service  may  be  had  upon 
any  person  within  this  state  who  acted  and  was  acting 
as  agent  of  any  such  corporation  in  this  state  at  the  time 
of  such  dissolution  or  forfeiture  of  charter  or  cancella- 
tion of  permit. 

SEC.  4.  The  rights  and  remedies  given  by  this  act  shall 
be  construed  as  cumulative  of  all  other  laws  in  force  in 
this  state,  a-nd  shall  not  affect,  change  or  repeal  any  other 
remedies  or  rights  now  existing  in  this  state  for  the  en- 
forcement, payment  or  collection  of  fines,  penalties  and 
forfeitures. 

SEG.  5.  In  case  any  suit  should  heretofore  be  brought 
in  any  of  the  courts  of  this  state  for  the  recovery  of  pen- 
alties mentioned  in  this  act,  the  same  shall  not  be  settled 


310  LAWS   ON   TKUSTS  AND  MONOPOLIES. 

or  compromised  without  trial  upon  the  merits  thereof 
without  the  consent  and  approval  of  the  attorney-general 
of  the  state.  (G.  L.,  1907,  p.  175.) 

COUKT  DECISIONS. 

Gulf,  C.  &  S.  F.  Ey.  Co.  v.  State,  72  Tex.,  401. 

Texas  Standard  Oil  Co.  v.  Adoue,  83  Tex.,  650. 

Wiggins  v.  Bisso,  92  Tex.,  219. 

Beer  v.  Landman,  88  Tex.,  450. 

Welch  v.  Phelps  &  Bigelow  Wind  Mill  Co.,  89  Tex.,  655. 

Texas  &  P.  Coal  Co.  v.  Lawson,  89  Tex.,  394. 

Texas  Brewing  Co.  v.  Templeman,  90  Tex.,  277. 

Fuqua  v.  Pabst  Brewing  Co.,  90  Tex.,  298. 

Houck  &  Dieter  v.  Anheuser-Busch  Brewing  Co.,  88 
Tex.,  184;  27  S.  W.,  692. 

Queen  Ins.  Co.  v.  State,  86  Tex.,  250. 

State  v.  Shippers  Comp.  &  Warehouse  Co.,  95  Tex., 
603;  67  S.  W.,  1049. 

State  v.  Laredo  Ice  Co.,  96  Tex.,  461. 

Gates  v.  Hooper,  90  Tex.,  563. 

Fort  Worth  &  D.  C.  Ry.  Co.  v.  State,  99  Tex.,  34;  88 
S.  W.,  370. 

State  v.  Missouri,  K.  &  T.  Ry.  Co.,  99  Tex.,  516. 

Norton  v.  Thomas  &  Sons  Co.,  99  Tex.,  578. 

Lytle  v.  Galveston,  H.  &  S.  A.  Ry.  Co.,  100  Tex.,  292. 

Atoertype  Co.  v.  Gust  Fiest  Co.,  102  Tex.,  219;  109 
S.  W.,  1139. 

Lone  Star  Salt  Co.  v.  Blount,  49  Tex.  Civ.  App.,  138. 

Crystal  Ice  Mfg.  Co.  v.  San  Antonio  Brewing  Assn.,  8 
Tex.  Civ.  App.,  1. 

Anderson  v.  Rowland,  18  Tex.  Civ.  App.,  460. 

Wolff  v.  Hirschfield,  23  Tex.  Civ.  App.,  670. 

Wolf  Co.  v.  Galbraith,  35  Tex.  Civ.  App.,  505. 

Crystal  Ice,  etc.,  Co.  v.  State,  23  Tex.  Civ.  App.,  293. 

Jones  v.  Carter,  45  Tex.  Civ.  App.,  450. 

Clark  v.  Cyclone  Woven  Wire  Fence  Co.,  22  Tex.  Civ. 
App.,  41. 

San  Antonio  Gas  Co.  v.  State,  22  Texas  Civ.  App.,  118. 

Mason  v.  Adoue,  30  Tex.  Civ.  App.,  276. 

Crump  v.  Ligon,  37  Tex.  Civ.  App.,  172. 

Redland  Fruit  Co.  v.  Sargent,  51  Tex.  Civ.  App.,  619. 

Waters-Pierce  Oil  Co.  v.  State,  48  Tex.  Civ.  App.,  162; 
affirmed,  212  U.  S.,  86;  and  see  Atty.  Gen.  v.  Waters- 
Pierce  Oil  Co.,  67  S.  W.,  1057. 


TEXAS.  311 

Pasteur  Vaccine  Co.  v.  Burkey,  22  Tex.  Civ.  App.,  232. 

Columbia  Carriage  Co.  v.  Hatch,  19  Tex.  Civ.  App.,  120. 

Lewis  v.  Weatherf ord,  M.  W.  &  N.  W.  Ey.  Co.,  36  Tex. 
Civ.  App.,  48. 

Waters-Pierce  Oil  Co.  v.  State,  19  Tex.  Civ.  App.,  1 ; 
affirmed,  177  U.  S.,  28. 

Vanderweghe  v.  American  Brewing  Co.,  61  S.  W.,  526". 

S.  S.  White  Dental  Mfg.  Co.  v.  Hertzberg,  51  S.  W.,  355. 

.Troy  Buggy  Works  v.  Fife  &  Miller,  74  S.  W.,  956. 

Simmons  &  Co.  v.  Terry,  79  S.  W.,  1103. 

Star  Mill  &  Elevator  Co.  v.  Ft.  Worth  Grain  &  Elev. 
Co.,  146  S.  W.,  604. 

Nickels  v.  Prewitt  Auto  Co.,  149  S.  W.,  1094. 

Wheatley  v.  Kollaer,  133  S.  W.,  903. 

State  v.  Eacine  Sattley  Co.,  134  S.  W.,  400. 

Forrest  Photo.  Co.  v.  Hutchinson  Gro.  Co.,  108.  S.  W., 
768. 

National  Cotton  Oil  Co.  v.  State,  72  S.  W.,  615. 

Comer  v.  Burton-Lingo  Co.,  58  S.  W.,  969. 

Springfield  F.  &  M.  Ins.  Co.  v.  Cannon,  46  S.  W.,  375. 

Jersey  Creme  Co.  v.  McDaniel  Bros.,  152  S.  W.,  1187. 

Texas  Brewing  Co.  v.  Durrum,  46  S.  W.,  880. 

Texas  Brewing  Co.  v.  Anderson,  40  S.  W.,  337. 

Texas  Brewing  Co.  v.  Meyer,  38  S.  W.,  263. 

Erwin  v.  Hayden,  43  S.  W.,  610. 

Patterson  v.  Crabb,  51  S.  W.,  870. 

Cases  frequently  cited  in  these  proceedings,  but  which 
involve  not  the  statute  but  the  constitutional  provision 
forbidding  the  creation  of  monopolies,  are : 

City  of  Brenham  v.  Brenham  Water  Co..  67  Tex.,  561. 

Hartford  Fire  Ins.  Co.  v.  City  of  Houston,  102  Tex., 
317. 

Edwards  County  v.  Jennings,  89  Tex.,  618. 

Altgelt  v.  City  of  San  Antonio,  17  S.  W.  75 ;  81  Tex., 
436. 


UTAH. 

CONSTITUTION. 

ART.  12,  SEC.  20.  Any  combination  by  individuals,  cor- 
porations, or  associations,  having  for  its  object  or  effect 
the  controlling  of  the  price  of  any  products  of  the  soil, 
or  of  any  article  of  manufacture  or  commerce,  or  the  cost 
of  exchange  or  transportation,  is  prohibited,  and  hereby 
declared  unlawful,  and  against  public  policy.  The  legis- 
lature shall  pass  laws  for  the  enforcement  of  this  section 
by  adequate  penalties,  and  in  case  of  incorporated  com- 
panies, if  necessary  for  that  purpose,  it  may  declare  a  for- 
feiture of  their  franchise. 

STATUTES. 

Any  combination  by  persons  having  for  its  object  or 
effect  the  controlling  of  the  prices  of  any  professional 
services,  any  products  of  the  soil,  any  article  of  manu- 
facture or  commerce,  or  the  cost  of  exchange  or  trans- 
portation, is  prohibited  and  declared  unlawful.  (Sec. 
1752.) 

Any  person  or  association  of  persons  who  shall  create, 
enter  into,  become  a  member  of,  or  a  party  to,  any  pool, 
trust,  agreement,  combination,  confederation  or  under- 
standing with  any  other  person  or  persons,  to  regulate  or 
fix  the  price  of  any  article  of  merchandise  or  commodity ; 
or  shall  enter  into,  become  a  member  of,  or  a  party  to. 
any  pool,  trust,  agreement,  contract,  combination  or  con- 
federation to  fix  or  limit  the  amount  or  quantity  of 
'any  article,  commodity  or  merchandise  to  be  manufac- 
tured, mined,  produced  or  sold  in  this  state,  shall  be 
deemed  and  adjudged  guilty  of  a  conspiracy  to  defraud, 
and  be  subject  to  punishment  as  hereinafter  provided. 
(Sec.  1753.) 

It  shall  not  be  lawful  for  any  corporation  to  issue  or 
to  own  trust  certificates;  or  for  any  corporation,  agent, 
officer  or  employee,  or  the  directors  or  stockholders  of 

313 


314  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

any  corporation,  to  enter  into  any  combination,  contract 
or  agreement  with  any  person  or  persons,  the  purpose  or 
effect  of  which  combination,  contract  or  agreement  shall 
be  to  place  the  management  or  control  of  such  combina- 
tion or  combinations,  or  the  manufactured  products 
thereof,  in  the  hand  of  any  trustee  or  trustees,  with  the 
intent  to  limit  or  fix  the  price,  or  lessen  the  production 
and  sale  of  any  article  of  commerce,  use,  or  consumption, 
or  to  prevent,  restrict,  or  diminish  the  manufacture  or 
output  of  any  such  article,  or  to  monopolize  any  part  of 
the  trade  or  commerce  within  this  state.  (Sec.  1754.) 

If  a  corporation,  a  company,  a  firm  or  association  shall 
be  found  guilty  of  a  violation  of  any  provision  of  this 
title,  it  shall  be  punished  by  a  fine  in  any  sum  not  less 
than  one  hundred  dollars  nor  more  than  two  thousand 
dollars  for  the  first  offense;  and  for  the  second  offense, 
not  less  than  five  hundred  dollars  nor  more  than  five 
thousand  dollars ;  and  for  the  third  offense,  not  less  than 
five  thousand  dollars  nor  more  than  ten  thousand  dollars ; 
and  for  every  subsequent  offense  shall  be  liable  to  a  fine 
of  fifteen  thousand  dollars.  (Sec.  1755.) 

Any  president,  manager,  director  or  other  officer,  agent 
or  receiver  of  any  corporation,  company,  firm  or  associa- 
tion, or  any  member  of  any  company,  firm  or  association, 
or  any  individual  found  guilty  of  a  violation  of  any  pro- 
vision of  this  title,  may  be  punished  by  a  fine  of  not  less 
than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  or  by  confinement  in  the  county  jail  not  more 
than  one  year,  or  by  both,  in  the  discretion  of  the  court 
before  which  such  conviction  may  have  been  had.  (Sec. 
1756.) 

Any  contract  or  agreement  in  violation  of  any  pro- 
vision of  this  title  shall  be  absolutely  void.  (Sec.  1757.) 

Any  corporation  organized  or  existing  under  the  laws 
of  this  state  that  shall  violate  any  provisions  of  this  title 
shall  thereby  forfeit  its  corporate  rights  and  franchises, 
and  its  corporate  existence  shall  thereupon  cease  and 
determine.  (Sec.  1758.) 

It  shall  be  the  duty  of  the  secretary  of  state,  upon  satis- 
factory evidence  that  any  corporation  or  association  of 
persons,  incorporated,  or  operating  under  the  laws  of  this 
state,  has  entered  into  any  trust,  combination  or  associa- 
tion, as  mentioned  in  the  preceding  provisions  of  this 
title,  to  give  notice  to  such  corporation  that  unless  it 
withdraws  from  and  severs  all  business  connections  with 


- 


UTAH. 

said  trust,  combination  or  association,  its  corporate  right 
and  franchise  will  be  revoked  at  the  expiration  of  thirty 
days  from  the  date  of  such  notice.  (Sec.  1759.) 

At  the  expiration  of  thirty  days,  if  such  withdrawal 
or  severance  be  not  theretofore  made,  the  secretary  of 
state  shall  cause  a  certified  statement  of  the  facts  to  be 
filed  in  the  office  of  the  attorney-general  of  the  state,  who 
shall  commence,  or  direct  any  county  attorney  in  the  state 
to  commence,  an  action,  in  any  district  court  of  the  state 
of  competent  jurisdiction,  to  forfeit  and  revoke  the  cor- 
porate rights  arid  franchise  of  such  corporation.  On  the 
iinal  decision  of  the  same,  should  the  defendant  be  found 
guilty  of  a  violation  of  any  of  the  provisions  of  this  title, 
the  court  shall  render  judgment  that  the  charter,  cor- 
porate rights  and  franchises  of  such  corporation  be  re- 
voked and  the  secretary  of  state  shall  thereupon  make 
publication  of  such  revocation  in  four  newspapers  in 
general  circulation  in  four  of  the  largest  cities  of  the 
state.  (Sec.  1760.) 

In  case  any  person  or  persons  shall  do,  cause  to  be  done, 
or  permit  to  be  done,  any  act,  matter  or  thing  in  this  title 
prohibited  or  declared  to  be  unlawful,  such  person  or  per- 
sons shall  be  liable  to  the  person  or  persons  injured 
thereby  for  treble  the  amount  of  damages  sustained  in 
consequence  of  any  such  violation.  (Sec.  1761.) 

The  word  "  person  "  or  "  persons,"  whenever  used  in 
this  title,  shall  be  deemed  to  include  corporations,  com- 
panies and  associations,  existing  under  or  authorized  by 
the  laws  of  either  the  United  States  or  any  of  the  terri- 
tories, any  state,  or  any  foreign  country.  (Sec.  1762.) 

[Charter  12.    Acts  1913.] 

UNFAIR  DISCRIMINATION  AND   COMPETITION  IN   THE  BUYING 
AND  SELLING  OF  DAIRY  PRODUCTS,  POULTRY  AND  EGGS. 

SECTION  1.  Any  person,  firm,  company,  association  or 
corporation,  foreign  or  domestic,  doing  business  in  the 
State  of  Utah  and  engaged  in  the  business  of  buying  milk, 
cream  or  butter  fat  for  the  purpose  of  manufacture  or 
sale,  or  of  buying  poultry  or  eggs  for  the  purpose  of  sale 
or  storage,  that  shall  for  the  purpose  of  creating  a  mo- 
nopoly or  destroying  the  business  of  a  competitor,  dis- 
criminate between  different  sections,  communities,  locali- 
ties, cities  or  towns  of  this  State  by  purchasing  such  com- 


£16  LAWS  OX   TRUSTS  AND  MONOPOLIES. 

niodity  or  commodities  at  a  higher  price  or  rate  in  one 
section,  community,  location,  city  or  town  than  is  paid  for 
the  same  commodity  by  said  person,  firm,  company,  asso- 
ciation or  corporation  in  another  section,  community, 
•  locality,  city  or  town  after  making  due  allowance  for  the 
difference,  if  any,  in  the  grade  or  quality,  and  in  the 
actual  cost  of  transportation  from  the  point  of  purchase 
to -the  pomt  of  manufacture,  sale  or  storage,  shall  be 
deemed  guilty  of  unfair  discrimination  which  is  hereby 
prohibited  and  declared  to  be  unlawful,  but  prices  made 
to  meet  competition  in  such  locality  shall  not  be  in  viola- 
tion of  this  act ;  and  any  person,  firm,  company,  associa- 
tion or  corporation  or  any  officer,  agent,  receiver  or  mem- 
ber of  such  firm,  company,  association  or  corporation 
found  guilty  of  unfair  discrimination  as  herein  defined 
shall  be  punished  by  a  fine  in  any  sum  not  more  than  five 
thousand  dollars,  or  by  imprisonment  in  the  county  jail 
not  exceeding  one  year,  or  by  both  such  fine  and  impris- 
onment. 
.  Approved  February  21,  1913. 

[Chapter  41.     Acts  1913.] 
UNFAIR  COMPETITION  AND  DISCRIMINATION. 

SECTION  1.  Any  person,  firm  or  corporation,  foreign  or 
domestic,  doing  business  in  the  State  of  Utah,  and  en- 
gaged in  the  production,  manufacture  or  distribution  of 
any  commodity  in  general  use,  that  intentionally,  for  the 
purpose  of  destroying  the  competition  of  any  regular, 
established  dealer  in  such  commodity,  or  to  prevent  the 
competition  of  any  person,  who  in  good  faith  intends  and 
attempts  to  become  such  dealer,  shall  discriminate  be- 
tween different  sections,  communities,  or  cities,  of  this 
State  by  selling  such  commodity  at  a  lower  rate  in  one 
section,  community  or  city,  or  any  portion  thereof,  than 
such  person,  firm  or  corporation,  foreign  or  domestic, 
charges  for  such  commodity  in  another  section,  commu- 
nity or  city,  after  equalizing  the  distance  from  the  point 
of  production,  manufacture,  or  distribution  and  freight 
rates  therefrom,  shall  be  deemed  guilty  of  unfair  dis- 
crimination. 

SEC.  2.  If  complaint  shall  be  made  to  the  attorney- 
general  that  any  corporation  is  guilty  of  unfair  discrimi- 
nation as  defined  by  this  act,  he  shall  investigate  such 


UTAH.  317 

complaint  and  for  that  purpose  he  may  subpoena  wit- 
nesses, administer  oaths,  take  testimony,  and  require  the 
production  of  books  or  other  documents,  and,  if  in  his 
opinion  sufficient  grounds  exist  therefor,  he  may  prose- 
cute an  action  in  the  name  of  the  State  in  the  proper  c6urt  v 
to  annul  the  charter  or  revoke  the  permit  of  such  corpora- 
tion, as  the  case  may  be,  and  to  permanently  enjoin  such 
corporation  from  doing  business  in  this  State,  and  if  in 
such  action  the  court  shall  find  that  such  corporation  is 
guilty  of  unfair  discrimination  as  defined  by  this  act, 
such  court  shall  annul  the  charter  or  revoke  the  permit  of 
such  corporation,  and  may  permanently  enjoin  it  from 
transacting  business  in  this  State. 

SEC.  3.  Any  person,  firm,  or  corporation  violating  the 
provisions  of  Section  1  of  this  act,  shall  upon  conviction 
thereof,  be  fined  not  less  than  one  hundred  dollars,  nor 
more  than  three  thousand  dollars  for  each  offense. 

Approved  March  12th,  1913. 


VERMONT. 

STATUTES. 


The  capital  stock  of  such  corporation  shall  not  be  less 
than  five  hundred  dollars,  and  shall  be  divided  into  shares 
not  exceeding  one  hundred  dollars  each.  Such  capital 
stock  may  be  increased  at  a  meeting  of  the  stockholders 
warned  for  that  purpose.  But  no  articles  of  association 
or  certificates  of  increase  of  capital  stock,  increasing  the 
capital  stock  of  any  corporation  organized  under  this 
chapter  to  an  amount  exceeding  ten  million  dollars,  shall 
be  filed  by  the  secretary  of  state  until  the  same  have  been 
submitted  to  a  judge  of  the  supreme  court,  who  shall  have 
the  power  to  determine,  with  or  without  hearing,  whether 
such  proposed  corporation  may  or  may  not  be  organized 
under  the  provisions  of  this  chapter.  Such  judge  shall 
not  permit  the  organization  of  such  corporation  if  in  his 
opinion  its  organization  is  liable  to  create  a  monopoly  or 
result  in  restraining  trade.  Shares  of  stock  may  be  issued 
as  preferred  stock  both  as  to  dividends  and  on  liquida- 
tion, under  such  terms  and  provisions  as  the  articles  of 
association  or  certificate  of  increase  of  capital  stock  may 
provide.  But  no  stock  shall  be  in  any  way  preferred 
unless  the  terms  of  preference  are  definitely  stated  in  the 
stock  certificate;  nor,  in  the  case  of  stock  issued  under  a 
certificate  of  increase  of  capital  stock,  unless  its  prefer- 
ence is  authorized  and  approved  by  the  unanimous  vote 
of  the  common  stock.  (Sec.  4311,  as  amended  bv  L.  1910. 
No.  143,  Sec.  4.) 

319 


VIRGINIA. 

CONSTITUTION. 

SEC.  165.  The  general  assembly  shall  enact  laws  pre- 
venting all  trusts,  combinations  and  monopolies  inimical 
to  the  public  welfare. 
16491—13 21 


WASHINGTON. 

CONSTITUTION. 

ART.  XII,  SEC.  22.  Monopolies  and  trusts  shall  never 
be  allowed  in  this  state,  and  no  incorporated  company, 
copartnership  or  association  of  persons  in  this  state  shall 
directly  or  indirectly  combine  or  make  any  contract  with 
any  other  incorporated  company,  foreign  or  domestic, 
through  their  stockholders,  or  the  trustees  or  assignees  of 
such  stockholders,  or  with  any  copartnership  or  associa- 
tion of  persons,  or  in  any  manner  whatever,  for  the  pur- 
pose of  fixing  the  price  or  limiting  the  production  or 
regulating  the  transportation  of  any  product  or  com- 
modity. The  legislature  shall  pass  laws  for  the  enforce- 
ment of  this  section  by  adequate  penalties,  and  in  case  of 
incorporated  companies,  if  necessary  for  that  purpose, 
may  declare  a  forfeiture  of  their  charter. 

COURT  DECISIONS. 

Wood  v.  City  of  Seattle,  23  Wash.,  1 ;  52  L.  E.  A,  369. 


323 


WEST   VIRGINIA. 

NOTE:  There  are  no  anti-trust  statutes  in  West  Vir- 
ginia. 

325 


WISCONSIN. 

STATUTES. 

Any  corporation  organized  under  the  laws  of  this  state 
which  shall  enter  into  any  combination,  conspiracy,  trust, 
pool,  agreement  or  contract  intended  to  restrain  or  pre- 
vent competition  in  the  supply  or  price  of  any  article  or 
commodity  in  general  use  in  this  state,  or  constituting  a 
subject  of  trade  or  commerce  therein,  or  which  shall  in 
any  manner  control  the  price  of  any  such  article  or  com- 
modity, fix  the  price  thereof,  limit  or  fix  the  amount  or 
quantity  thereof  to  be  manufactured,  mined,  produced  or 
sold  in  this  state,  or  fix  any  standard  or  figure  by  which 
its  price  to  the  public  shall  be  in  any  manner  controlled 
or  established,  shall  upon  proof  thereof,  in  any  court 
of  competent  jurisdiction  have  its  charter  or  authority 
to  do  business  in  this  state  cancelled  and  annulled. 
Every  *  *  *  corporation  shall,  upon  filing  its  an- 
nual *  *  *  report  with  the  secretary  of  state,  make 
and  attach  thereto  the  affidavit  of  its  president,  secretary 
or  general  managing  officer,  fully  stating  the  facts  in 
regard  to  the  matters  specified  in  this  section.  (S.,  Sec. 
1791  j;L.  190T,  p.  432.) 

Upon  complaint  being  made  to  the  attorney-general 
and  evidence  produced  to  him  which  shall  satisfy  him  that 
any  such  corporation  has  violated  any  of  the  conditions 
specified  in  sections  1791J  and  1791k,  he  shall  forthwith 
bring  an  action  in  the  name  of  the  state  in  any  circuit 
court  of  this  state  to  have  the  charter  of  such  corporation 
forfeited,  cancelled  and  annulled,  and  upon  due  proof 
being  made  thereof  to  the  satisfaction  of  the  court,  judg- 
ment shall  be  entered  therefor.  (S.,  Sec.  17911;  L.  1905. 
p.  944.) 

Any  foreign  corporation  which  shall  enter  into  any 
combination,  conspiracy,  trust,  pool,  agreement  or  con- 
tract intended  to  restrain  or  prevent  competition  in  the 
supply  or  price  of  any  article  or  commodity  in-  general 

327 


328  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

use  in  the  state,  or  constituting  a  subject  of  trade  or  com- 
merce therein,  or  which  shall  in  any  manner  control  the 
price  of  any  such  article  or  commodity,  fix  the  price 
thereof,  limit  or  fix  the  amount  or  quantity  thereof  to  be 
manufactured,  mined,  produced  or  sold  in  this  state,  or 
fix  any  standard  or  figure  by  which  its  price  to  the  public 
shall  be  in  any  manner  controlled  or  established,  shall, 
upon  proof  thereof,  in  any  court  of  competent  jurisdic- 
tion, have  its  license  or  authority  to  do  business  in  this 
state  cancelled  and  annulled.  (S.,  Sec.  I770g;  L.  1905. 
p.  937.) 

No  foreign  corporation  shall  be  authorized  to  file  its 
charter  or  articles  of  incorporation  or  association  with 
the  secretary  of  state,  or  be  authorized  to  do  business  in 
this  state  unless  it  shall  at  the  time  of  making  applica- 
tion therefor  file  with  the  secretary  of  state  an  affidavit 
executed  by  its  president,  secretary  or  general  managing 
officer  stating  that  such  corporation  has  not  violated  any 
of  the  provisions  of  section  ITTOg;  and  every  such  corpo- 
ration shall,  upon  filing  its  annual  statement  with  the  sec- 
retary of  state,  make  and  attach  thereto  the  affidavit  of 
its  president,  secretary  or  general  managing  officer,  fully 
stating  the  facts  in  regard  to  the  matters  specified  in 
section  I770g.  (S.,  Sec.  I770h ;  L.  1905,  p.  937.) 

Upon  complaint  being  made  to  the  attorney-general 
and  evidence  produced  to  him  which  shall  satisfy  him 
that  any  such  foreign  corporation  has  violated  any  of 
the  conditions  specified  in  sections  I770f  and  I770g,  he 
shall  forthwith  bring  an  action  in  the  name  of  the  state 
in  any  circuit  court  of  this  state  to  have  the  license  of 
such  corporation  to  do  business  in  this  state  cancelled 
and  annulled  and  upon  due  proof  being  made  thereof  to 
the  satisfaction  of  the  court,  judgment  shall  be  entered 
therefor.  The  provisions  of  section  1791m  shall  extend 
to  all  proceedings  under  this  and  the  two  foregoing  sec- 
tions. (S.,  Sec.  I770i;  L.  1905,  p.  937.) 

POWER  TO    HOLD  STOCKS  AND  BONDS  OF  OTHER  CORPORATIONS. 

In  all  cases  in.  which  one  corporation  shall  hold  stock 
in  another,  such  stock  shall,  at  all  meetings  of  the  stock- 
holders of  the  latter  corporation,  be  voted  by  the  presi- 
dent of  the  former,  unless  its  board  of  directors,  by  reso- 
lution adopted  at  any  regular  or  special  meeting  of  such 


WISCONSIN.  329 

board,  designate  some  other  person  for  that  purpose ;  and 
any  one  or  more  officers  of  the  former  corporation  may  be 
chosen,  qualify  and  act  as  directors  and  officers  of  the 
latter  corporation,  as  in  the  case  of  other  stockholders. 
(S.  Sec.  I776a;  L.  1905,  p.  30.) 

Acts  1913. 

[No.  77,  A.] 

SECTION  1791n — 9.  1.  Any  person,  firm,  or  corporation, 
foreign  or  domestic,  doing  business  in  this  state  and  en- 
gaged in  the  production,  manufacture  or  distribution  of 
any  commodity  in  general  use>  that  shall  intentionally,  for 
the  purpose  of  destroying  the  competition  of  any  regular, 
established  dealer  in  such  commodity  or  to  prevent  com- 
petition of  any  person  who,  in  good  faith,  intends  or  at- 
tempts to  become  such  dealer,  discriminate  between  differ- 
ent sections,  communities,  or  cities  of  this  state,  by  sell- 
ing such  commodity  at  a  lower  rate  in  one  section,  com- 
munity, or  city,  or  any  portion  thereof,  than  such  person, 
firm,  or  corporation,  foreign  or  domestic,  charges  for 
such  commodity  in  another  section,  community,  or  city, 
after  making  due  allowance  for  the  difference,  if  any,  in 
the  grade  or  quality  and  in  the  cost  of  transportation 
from  the  point  of  production,  if  a  raw  product,  or  from 
the  point  of  manufacture,  if  a  manufactured  product, 
shall  be  deemed  guilty  of  unfair  discrimination,  which  is 
hereby  prohibited  and  declared  unlawful. 

2.  Any  person,  firm,  company,  association  or  corpora- 
tion, and  any  officer,  agent  or  receiver  of  any  firm,  com- 
pany, association  or  corporation,  or  any  member  of  the 
same,  or  any  individual  violating  any  of  the  provisions 
of  this  section  shall  be  deemed  guilty  of  a  misdemeanor 
and  upon  conviction  thereof  shall  be  punished  by  a  fine 
of  not  less  than  two  hundred  dollars,  nor  more  than  five 
thousand  dollars  for  each  offense,  or  by  imprisonment  in 
the  county  jail  not  to  exceed  one  year,  or  by  both  such 
fine  and  imprisonment. 

SECTION  lT91n — 10.  1.  Any  person,  firm,  company,  as- 
sociation or  corporation,  foreign  or  domestic,  doing  busi- 
ness in  this  state  and  engaged  in  the  business  of  collecting 
or  buying  any  product,  commodity  or  property  of  any 
kind,  that  shall  intentionally,  for  the  purpose  of  injuring 
or  destroying  the  business  or  trade  of  a  competitor  in  any 


330  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

locality,  or  to  prevent  competition  by  any  person  who  in 
good  faith  intends  or  attempts  to  engage  in  such  business, 
discriminate  between  the  different  sections,  communities, 
or  cities  of  this  state,  or  between  persons,  firms,  associa- 
tions or  corporations  in  any  locality,  by  buying  any  prod- 
uct, commodity  or  property  of  any  kind,  and  paying 
therefor  a  higher  rate  or  price  in  one  section,  community, 
or  city,  or  to  any  person,  firm,  association  or  corporation 
than  is  paid  for  the  same  kind  of  product,  commodity  or 
property  by  said  person,  firm,  company,  association  or 
corporation,  foreign  or  domestic,  in  another  section,  com- 
munity or  city,  or  to  another  person,  firm,  association  or 
corporation,  after  making  due  allowance  for  the  differ- 
ence, if  any,  in  the  grade  or  quality  and  in  the  actual  cost 
of  the  transportation  from  the  point  where  the  same  is 
purchased  to  the  market  where  it  is  sold,  or  intended  to 
be  sold,  shall  be  deemed  guilty  of  unfair  discrimination, 
which  is  hereby  prohibited  and  declared  unlawful. 

2.  Any  person,  firm,  company,  association  or  corpora- 
tion, and  any  officer,  agent  or  receiver  of  ajiy  firm,  com- 
pany, association  or  corporation,  or  any  member  of  the 
same,  or  any  individual  violating  any  of  the  provisions 
of  this  section  shall  be  deemed  guilty  of  a  misdemeanor 
and  upon  conviction  thereof  shall  be  punished  by  a  fine 
of  not  less  than  two  hundred  dollars  nor  more  than  five 
thousand  dollars  for  each  offense,  or  by  imprisonment  in 
the  county  jail  not  to  exceed  one  year,  or  by  both  such  fine 
and  imprisonment. 

SECTION  lT91n — 11.  The  attorney  general  shall  insti- 
tute, manage,  control,  and  direct,  by  himself,  his  deputy 
or  any  of  his  assistants,  in  the  proper  county,  all  prosecu- 
tions for  violations  of  sections  1791n — 9  and  1791n — 10 
and  for  such  purpose  shall  have  and  exercise  all  powers 
conferred  upon  district  attorneys  in  such  cases.  It  shall 
be  the  duty  of  the  district  attorney  in  the  county  in  which 
any  such  prosecution  may  be  instituted  or  pending  to  co- 
operate with  and  assist  the  attorney  general  in  such  pros- 
ecution. 

SECTION  lT91n — 12.  If  complaint  shall  be  made  to  the 
attorney  general  that  any  corporation  is  guilty  of  unfair 
discrimination,  as. defined  by  the  provisions  of  section 
I791n — 9  or  1791n — 10,  he  shall  investigate  such  com- 
plaint and  for  that  purpose  he  may  subpoena  witnesses, 
administer  oaths,  take  testimony  and  require  the  produc- 
tion of  books  or  other  document?,  and,  if  in  his  opinion 


WISCONSIN.  331 

sufficient  grounds  exist  therefor,  he  may  prosecute  an  ac- 
tion in  the  name  of  the  state  in  the  proper  court  to  annul 
the  charter  or  revoke  the  permit  of  such  corporation,  as 
the  case  may  be,  and  to  permanently  enjoin  such  corpora- 
tion from  doing  business  in  this  state,  and  if  in  such 
action  the  court  shall  find  that  such  corporation  is  guilty 
of  unfair  discrimination,  as  defined  by  the  provisions  of 
said  section  179 In — 9  or  179 In — 10,  such  court  shall  annul 
the  charter  or  revoke  the  permit  of  such  corporation,  and 
may  permanently  enjoin  it  from  transacting  business  in 
this  state. 

SECTION  2.  This  act  shall  take  effect  and  be  in  force 
from  and  after  its  passage  and  publication.  (Chapter 
165,  Acts,  1913.) 

COURT  DECISIONS. 

National  Distilling  Co.  v.  Cream  City  Importing  Co., 
86  Wis.,  352. 

Ha  warden  v.  Youghiogheny  &  L.  Coal  Co.,  Ill  Wis., 
545 ;  55  L.  R.  A.,  828. 

Bratt  v.  Swift,  99  Wis.,  579;  75  N.  W.,  411. 

Rubber  Tire  Wheel  Co.  v.  Milwaukee  Rubber  Works 
Co.,  142  Fed.,  531. 


WYOMING. 

CONSTITUTION. 

ART.  X,  SEC.  6.  No  corporation  shall  have  power  to 
engage  in  more  than  one  general  line  or  department  of 
business,  which  line  of  business  shall  be  distinctly  speci- 
fied in  its  charter  of  incorporation. 

STATUTES. 

Any  person,  firm,  or  corporation,  foreign  or  domestic, 
doing  business  in  the  State  of  Wyoming  and  engaged 
in  the  production,  manufacture  or  distribution  of  any 
commodity  in  general  use,  that  shall,  intentionally,  for 
the  purpose  of  destroying  competition,  discriminate  be- 
tween different  sections,  communities  or  cities  of  this 
state,  by  selling  such  commodity  at  a  lower  rate  in  one  sec- 
tion, community  or  city,  or  any  portion  thereof,  than  is 
charged  for  such  commodity  in  another  section,  com- 
munity or  city,  after  equalizing  the  distance  from  the 
point  of  production,  manufacture  or  distribution  and 
freight  rates  therefrom,  shall  be  deemed  guilty  of  unfair 
discrimination ;  provided,  however,  that  this  act  shall  not 
apply  to  any  case  where  by  reason  of  different  railroad 
rates  or  other  natural  things  in  favor  of  any  manufac- 
turer or  dealer  of  goods  of  this  or  another  state  such 
manufacturer  or  dealer  sells  at  a  different  price  than  he 
does  in  another,  in  order  to  meet  the  competitive  rates 
or  other  natural  things  in  favor  of  such  other  manufac- 
turer or  dealer ;  provided,  further,  that  this  act  shall  not 
apply  to  any  case  where  any  manufacturer  of  or  dealer 
in  goods  manufactured  or  produced  in  this  state  sells 
products  in  one  place  cheaper  than  in  another  to  meet 
upon  the  same  or  more  favorable  basis  any  competition 
from  foreign  states,  or  this  state;  provided,  further,  that 
this  act  shall  not  prevent  the  sale  of  goods  at  proper  com- 
mercial discount  customary  in  the  sale  of  such  particular 
goods.  (L.  1911,  c.  62,  Sec.  1.) 


334  LAWS   ON    TRUSTS  AND   MONOPOLIES. 

If  complaint  shall  be  made  to  the  attorney-general  of 
the  state  of  Wyoming,  or  the  county  and  prosecuting  at- 
torney of  any  county  thereof,  that  any  corporation,  char- 
tered in  this  state  or  any  foreign  corporation,  doing 
business  in  this  state  by  virtue  of  compliance  with  the 
laws  thereof,  or  any  person  or  firm  of  persons  doing 
business  in  this  state,  is  guilty  of  unfair  discrimination, 
within  the  terms  of  this  act,  it  shall  be  the  duty  of  the 
attorney-general,  and  the  county  and  prosecuting  attor- 
neys of  this  state  to  institute  an  inquiry  as  to  such  dis- 
crimination, giving  to  the  party  complained  against 
notice  and  reasonable  opportunity  to  be  heard,  and  if 
in  the  judgment  of  such  prosecuting  officers,  or  either  of 
them,  any  corporation,  foreign  or  domestic,  or  any  per- 
son or  firm  of  persons  shall  have  been  guilty  of  unfair 
discrimination,  within  the  terms  of  this  act,  it  shall  be 
their  duty  to  institute  quo  warranto  proceeding,  to  for- 
feit the  charter  of  said  domestic  corporation,  or  if  a  for- 
eign corporation  to  procure  an  order  of  court  to  cause 
the  permit  of  said  corporation  to  do  business  in  this  state, 
immediately  forfeited.  (Id.,  Sec.  2.) 

If  after  the  revocation  of  such  charter,  in  the  case  of 
domestic  corporation;  or  if  its  permit,  if  it  be  a  foreign 
corporation,  any  corporation  shall  continue  or  attempt  to 
do  business  in  the  State  of  Wyoming,  it  shall  be  the  duty 
of  the  attorney-general,  by  a  proper  suit,  in  the  name  of 
the  State  of  Wyoming  to  oust  such  corporation  from  all 
business  of  every  kind  and  character  in  said  State  of 
Wyoming.  (Id.,  Sec.  3.) 

Any  person,  firm  or  corporation  violating  the  provi- 
sions of  this  act  shall  be  deemed  guilty  of  a  misdemeanor, 
and  upon  conviction  thereof,  shall  forfeit  to  the  State 
of  Wyoming  the  sum  of  not  less  than  two  hundred  dol- 
lars for  each  and  every  violation  of  this  act.  Said  sum 
to  be  recovered  by  a  suit,  in  the  name  of  the  State  of 
Wyoming,  in  any  court  of  competent  jurisdiction,  by  the 
attorney-general.  (Id.,  Sec.  4.) 

Nothing  in  this  act  shall  be  construed  as  repealing  any 
other  act  or  part  of  an  act,  but  the  remedies  herein  pro- 
vided shall  be  cumulative  to  all  other  remedies  provided 
bylaw.  (Id.,  Sed.  5.) 


LAWS  ON  TRUSTS  AND  MONOPOLIES. 

FOREIGN  COUNTRIES.1 


AUSTRALIA. 

THE    AUSTRALIAN    INDUSTRIES    PRESERVATION    ACT, 

1906. 

[As  amended  by  the  acts  of  1907,  1909,  and  1910.] 

AN  ACT  For  the  preservation  of  Australian  industries,  and  for 
the  repression  of  destructive  monopolies. 

[Assented  to  Sept.  24,  1906.] 

Be  it  enacted  by  the  King's  Most  Excellent  Majesty, 
the  Senate,  and  the  House  of  Representatives  of  the  Com- 
monwealth of  Australia,  as  follows: 

PART  I. — Preliminary. 

1.  This  act  may  be  cited  as  the  Australian  industries 
preservation  act,  1906-1910. 

2.  This  act  is  divided  into  parts  as  follows:  Part  I, 
preliminary;   Part  II,   repression  of  monopolies;   Part 
III,  prevention  of  dumping.  . 

3.  In  this  act,  unless  the  contrary  intention  appears — 
"  Commercial  trust "  includes  a  combination,  whether 

wholly  or  partly  within  or  beyond  Australia,  of  separate 
and  independent  persons  (corporate  or  unincorporate) , 
whose  voting  power  or  determinations  are  controlled  or 
controllable  by  (a)  the  creation  of  a  trust  as  understood 
in  equity,  or  of  a  corporation  wherein  the  trustees  or  cor- 
poration hold  the  interests,  shares,  or  stock  of  the  con- 
stituent persons;  or  (b)  an  agreement;  or  (c)  the  creation 
of  a  board  of  management  or  its  equivalent;  or  (d)  some 
similar  means;  and  includes  any  division,  part,  constit- 
uent person,  or  agent  of  a  commercial  trust. 

"  Inadequate  remuneration  for  labor  "  includes  inade- 
quate pay  or  excessive  hours  or  any  terms  or  conditions  of 
labor  or  employment  unduly  disadvantageous  to  workers. 

1  Acknowledgment  of  indebtedness  is  made  to  Fred.  A.  Johnson. 

335 


336  LAWS    OX    TRUSTS    AND    MONOPOLIES. 

"  Person  "  includes  corporation  and  firm  and  u  com- 
mercial trust. 

"  The  comptroller  general  "  means  the  comptroller  gen- 
eral of  customs. 

"Answer  questions  "  means  that  the  person  on  whom 
the  obligation  of  answering  questions  is  cast  shall,  to  the 
best  of  his  knowledge,  information,  and  belief,  truly 
answer  all  questions  on  the  subject  mentioned  that  the 
comptroller  general  or  the  person  named  by  him  shall  ask. 

"  Produce  documents  "  means  that  the  person  on  whom 
the  obligation  to  produce  documents  is  cast  shall,  to  the 
best  of  his  power,  produce  to  the  comptroller  general  or 
to  the  person  named  by  him  all  documents  relating  to 
the  subject  matter  mentioned. 

PART  II. — Repression  of  monopolies. 

4.  (1)  Any  person  who,  either  as  principal  or  as  agent, 
makes  or  enters  into  any  contract,  or  is  or  continues  to  be 
a  member  of  or  engages  in  any  combination  in  relation 
to  trade  or  commerce  with  other  countries  or  among  the 
States — (a)  in  restraint  of  or  with  intent  to  restrain 
trade  or  commerce;  or  (b)  to  the  destruction  or  injury 
of  or  with  intent  to  destroy  or  injure  by  means  of  unfair 
competition  any  Australian  industry  the  preservation  of 
which  is  advantageous  to  the  Commonwealth,  having  due 
regard  to  the  interests  of  producers,  workers,  and  con- 
sumers, is  guilty  of  an  offense. 

Penalty,  £500,  or,  in  the  case  of  a  continuing  offense. 
£500  for  each  day  during  which  the  offense  continues. 

(2)  Every  contract  made  or  entered  into  in  contra- 
vention of  this  section  shall  be  absolutely  illegal  and  void. 

(3)  It  shall  be  a  defense  to  a  proceeding  for  an  offense 
under  paragraph   (a)   of  subsection   (1)  of  this  section, 
and  an  answer  to  an  allegation  that  a  contract  was  made 
or  entered  into  in  restraint  of,  or  with  intent  to  restrain, 
trade  or  commerce,  if  the  party  alleged  to  have  contra- 
vened this  section  proves   (a)  that  the  matter  or  thing 
alleged  to*  have  been  done  in  restraint  of,  or  with  intent 
to  restrain,  trade  or  commerce  was  not  to  the  detriment 
of  the  public;  and  (ft)  that  the  restraint  of  trade  or  com- 
merce effected  or  intended  was  not  unreasonable. 

(Section  5  repealed.) 

6.  (1)  For  the  purposes  of  section  4  and  section  10  of 
this  act.  unfair  competition  means  competition  which  is 


AUSTRALIA.  837 

unfair  in  the  circumstances;  and  in  the  following  cases 
the  competition  shall  be  deemed  to  be  unfair  unless  the 
contrary  is  proved: 

(a)  If  the  defendant  is  a  commercial  trust. 

(&)  If  the  competition  would  probably  or  does  in  fact 
result  in  an  inadequate  remuneration  for  labor  in  the 
Australian  industry. 

(c)  If  the  competition  would  probably  or  does  in  fact 
result  in  an  inadequate  remuneration  for  labor  in  the 
liari  industry  or  throwing  workers  out  of  employment. 

(d)  If  the  defendant,  with  respect  to  any  goods  or 
services  which  are  the  subject  of  the  competition,  gives, 
offers,  or  promises  to  any  person  any  rebate,  refund,  dis- 
count, or  reward  upon  condition  that  that  person  deals,  or 
in  consideration  of  that  person  having  dealt,  with  the 
defendant  to  the  exclusion  of  other  persons  dealing  in 
similar  goods  or  services. 

(2)  In  determining  whether  the  competition  is  unfair, 
regard  shall  be  had  to  the  management,  the  processes,  the 
plant,  and  the  machinery  employed  or  adopted  in  the 
Australian  industry  affected  by  the  competition  being 
reasonably  efficient,  effective,  and  up  to  date. 

7.  ( 1 )  Any  person  who  monopolizes  or  attempts  to  mo- 
nopolize, or  combines  or  conspires  with  any  other  person 
to  monopolize,  any  part  of  the  trade  or  commerce  with 
other  countries  or  among  the  States,  is  guilty  of  an  indict- 
able offense. 

Penalty,  £500  for  each  day  during  which  the  offense 
continues,  or  one  year's  imprisonment,  or  both ;  or,  in  the 
case  of  a  corporation,  £1,000  for  each  day  during  which 
the  offense  continues. 

(2)  Every  contract  made  or  entered  into  in  contra- 
vention of  this  section  shall  be  absolutely  illegal  and  void. 

(3)  The  attorney  general  may  elect,  instead  of  proceed- 
ing by  indictment  for  an  offense  against  this  section,  to 
institute  proceedings  in  the  high  court  by  way  of  civil 
action  for  the  recovery  of  the  pecuniary  penalties  for  the 
offense;  in  which  case  the  action  shall  be  tried  before  a 
justice  of  that  court  without  a  jury. 

7A.  (1)  Any  person  who,  in  relation  to  trade  or  com- 
merce with  other  countries  or  among  the  States,  either  as 
principal  or  agent,  in  respect  of  dealings  in  any  goods  or 
services  gives,  offers,  or  promises  to  any  other  person  any 
rebate,  refund,  discount,  concession,  or  reward  for  the 
reason,  or  upon  the  condition,  express  or  implied,  that  the 
16491—13 — -22 


338  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

latter  person  (a)  deals,  or  has  dealt,  or  will  deal,  or  in- 
tends to  deal  exclusively  with  any  person,  either  in  rela- 
tion to  any  particular  goods  or  services  or  generally;  or 
(b)  deals,  or  has  dealt,  or  will  deal,  or  intends  to  deal 
exclusively  with  members  of  a  commercial  trust,  either 
in  relation  to  any  particular  goods  or  services  or  gener- 
ally; or  (c)  does  not  deal,  or  has  not  dealt,  or  will  not 
deal,  or  does  not  intend  to  deal  with  certain  persons, 
either  in  relation  to  any  particular  goods  or  services  or 
generally ;  or  (d)  is  or  becomes  a  member  of  a  commercial 
trust ;  is  guilty  of  an  offense. 
Penalty,  £500. 

(2)  Every  contract  made  or  entered  into  in  contraven- 
tion of  this  section  shall  be  absolutely  illegal  and  void. 

(3)  It  shall  be  a  defense  to  a  prosecution  under  this 
section,  and  an  answer  to  an  allegation  that  a  contract 
was  made  or  entered  into  in  contravention  of  this  section, 
if  the  party  alleged  to  have  contravened  this  section 
proves  that  the  matter  or  thing  alleged  to  have  been  done 
in  contravention  of  this  section  was  not  to  the  detriment 
of  the  public,  and  did  not  constitute  competition  which 
was  unfair  in  the  circumstances,  and  was  not  destructive 
of  or  injurious  to  any  Australian  industry. 

7B.  Any  person  who,  in  relation  to  trade  and  commerce 
with  other  countries  or  among  the  States,  either  as  prin- 
cipal or  agent,  refuses  either  absolutely  or  except  upon 
disadvantageous  conditions  to  sell  or  supply  to  any  other 
person  any  goods  or  services  for  the  reason  that  the  latter 
person  (a)  deals,  or  has  dealt,  or  will  deal,  or  intends  to 
deal  with  any  person;  or  (b)  deals,  or  has  dealt,  or  will 
deal,  or  intends  to  deal  with  persons  who  are  not  members 
of  a  commercial  trust;  or  (c)  is  not  a  member  of  a  com- 
mercial trust ;  is  guilty  of  an  offense. 

Penalty,  £500. 

(Section  8  repealed.) 

9.  Whoever  aids,  abets,  counsels,  or  procures,  or  by  act 
or  omission  is  in  any  way,  directly  or  indirectly,  know- 
ingly concerned  in  or  privy  to  (a)  the  commission  of  any 
offense  against  this  part  of  this  act;  or  (5)  the  doing  of 
any  act  outside  Australia  which  would,  if  done  within 
Australia,  be  an. offense  against  this  part  of  this  act; 
shall  be  deemed  to  have  committed  the  offense. 

Penalty,  £500. 

10.  (1)   The  attorney  general,  or  any  person  thereto 
authorized  by  him,  may  institute  proceedings  in  the  high 


AUSTRALIA.  339 

court  to  restrain  by  injunction  after  hearing  and  deter- 
mining the  merits  and  not  by  way  of  interlocutory  order 
the  carrying  out  of  any  contract  made  or  entered  into 
after  the  commencement  of  this  act  or  any  combination 
which  (a)  is  in  restraint  of  trade  or  commerce;  or  (5)  is 
destructive  or  injurious,  by  means  of  unfair  competition, 
to  any  Australian  industry  the  preservation  of  which  is 
advantageous  to  the  Commonwealth,  having  due  regard 
to  the  interests  of  producers,  workers,  and  consumers. 

Provided,  that  this  section  shall  only  apply  to  con- 
tracts or  combinations  in  relation  to  commerce  with  other 
countries  or  among  the  States. 

(2)  On  the  conviction  of  any  person  for  an  offense 
under  this  part  of  this  act  the  justice  before  whom  the 
trial  takes  place  shall,  upon  application  by  or  on  behalf 
of  the  attorney  general  or  any  person  thereto  authorized 
by  him,  grant  an  injunction  restraining  the  convicted 
person  and  his  servants  and  agents  from  the  repetition  or 
continuance  of  the  offense  of  which  he  has  been  convicted. 

10A.  (1)  Any  person  who  does  any  act  or  thing  in 
disobedience  of  an  injunction  granted  under  this  part  of 
this  act  shall  be  guilty  of  an  offense. 

Penalty,  £500  for  each  day  during  which  the  offense 
continues. 

(2)  This  section  shall  not  be  deemed  to  derogate  from 
the  power  of  the  high  court,  apart  from  this  section,  to 
enforce  obedience  to  the  injunction. 

11.  (1)   Any  person  who  is  injured  in  his  person  or 
property  by  any  other  person,  by  reason  of  any  act  or 
thing  done  by  that  other  person  in  contravention  of  this 
part  of  this  act,  or  by  reason  of  any  act  or  thing  done 
in  contravention  of  any  injunction  granted  under  this 
part  of  this  act,  may,  in  the  high  court,  before  a  justice, 
without  a  jury,  sue  for  and  recover  treble  damages  for  the 
injury. 

(2)  No  person  shall,  in  any  proceeding  under  this  sec- 
tion, be  excused  from  answering  any  question  put  either 
viva  voce  or  by  interrogatory,  or  from  making  any  dis- 
covery of  documents,  on  the  ground  that  the  answer  or 
discovery  may  criminate  or  tend  to  criminate  him;  but 
his  answer  shall  not  be  admissible  in  evidence  against 
him  in  any  criminal  proceeding  other  than  a  prosecution 
for  perjury. 

12.  The  jury  panel  for  the  trial  of  any  offense  against 
this  part  of  this  act.  or  for  the  trial  of  any  action  or 


340  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

issue  under  this  part  of  this  act,  shall  be  taken  from  the 
list  of  special  jurors  (if  any)  in  the  State  or  part  of  the 
Commonwealth  in  which  the  trial  takes  place. 

13.  (1)  Proceedings  for  the  recovery  of  pecuniary  pen- 
alties for  offenses  against  this  part  of  this  act  (other  than 
indictable  offenses  or  offenses  against  section  15B,  section 
15C,  or  section  15E)  shall  be  instituted  in  the  high  court 
by  way  of  civil  action  and  shall  be  tried  before  a  justice 
of  that  court  without  a  jury. 

(2)  Any  offense  against  this  part  of  this  act  committed 
by  the  person  who  has  previously  been  convicted  of  any 
offense  against  this  part  of  this  act  shall  be  an  indictable 
offense,  punishable  on  conviction  by  a  penalty  not  exceed- 
ing £500  or  imprisonment  for  any  term  not  exceeding  one 
year,  or  both;  in  the  case  of  a  corporation  by  a  penalty 
not  exceeding  £500. 

14.  (1)   No  proceeding  for  an  indictable  offense  or  for 
the  recovery  of  penalties  shall  be  instituted  under  this 
part  except  by  the  attorney  general  or  some  person  au- 
thorized by  him. 

(2)  No  other  proceeding  shall  be  instituted  under  this 
part  without  the  written  consent  of  the  attorney  general. 

14A.  In  any  proceeding  for  an  offense  against  this 
part  of  this  act,  any  indictment,  information,  statement 
of  claim,  conviction,  warrant,  or  other  process  shall  suffice 
if  the  offense  is  set  forth  as  nearly  as  may  be  in  the  words 
of  this  act. 

14B.  No  person  shall,  in  any  proceeding  for  an  offense 
against  this  part  of  this  act,  be  excused  from  answering 
any  question,  put  either  viva  voce  or  by  interrogatory, 
or  from  making  any  discovery  of  documents,  on  the 
ground  that  the  answer  or  discovery  may  tend  to  crimi- 
nate him  or  make  him  liable  to  a  penalty ;  but  his  answer 
shall  not  be  admissible  in  evidence  against  him  in  any 
civil  or  criminal  proceeding  other  than  a  proceeding  for 
an  offense  against  this  act  or  a  prosecution  for  perjury. 

14C.  In  any  proceeding  for  an  offense  against  this  part 
of  this  act,  wherein  a  combination  or  conspiracy  or  at- 
tempted combination  or  conspiracy  in  contravention  of 
this  act  is  alleged,  any  book,  document,  paper,  or  writing 
containing  (a)  any  minute,  note,  record,  or  memorandum 
of  any  proceeding  at  any  meeting  of  the  persons  or  any  of 
the  persons  alleged  to  have  been  parties  or  privy  to  the 
combination,  conspiracy,  or  attempt;  or  (b)  any  entry 
purporting  to  be  a  copy  of  or  extract  from  any  such  book. 


AUSTRALIA.  341 

document,  paper,  or  writing,  shall,  upon  proof  that  it 
was  produced  by  or  came  from  the  custody  of  those  per- 
sons, or  any  of  them,  or  of  a  responsible  officer  or  a  repre- 
sentative of  those  persons,  or  any  of  them,  (1)  be  admis- 
sible in  evidence  against  those  persons;  and  (2)  be  evi- 
dence that  the  matter  and  things  thereby  appearing  to 
have  been  done  by  those  persons,  or  any  of  them,  were  so 
done,  and  that  any  person  thereby  appearing  to  have  been 
present  at  the  meeting  was  so  present. 

14D.  In  any  proceeding  for  an  offense  against  this  part 
of  this  act,  any  book,  letter,  document,  paper,  or  writing, 
or  anything  purporting  to  be  a  copy  of,  or  extract  from, 
any  book,  letter,  document,  paper,  or  writing,  containing 
any  reference  to  any  matter  or  thing  alleged  to  be  done 
in  contravention  of  this  act.  shall,  upon  proof  that  it  was 
produced  by  or  came  from  the  custody  of  a  person 
charged  with  the  offense,  or  a  responsible  officer  or  a  rep- 
resentative of  that  person  (a)  be  admissible  in  evidence 
against  that  person;  and  (5)  be  evidence  of  the  matters 
and  things  thereby  appearing,  and  that  the  book,  letter, 
document,  paper,  or  writing  (or,  in  the  case  of  a  copy, 
that  the  original  thereof)  was  written,  signed,  dispatched, 
and  received  by  the  persons  by  whom  it  purports  to  have 
been  written,  signed,  dispatched,  and  received,  and  that 
any  such  copy  or  extract  is  a  true  copy  of,  or  extract 
from,  the  original  of  or  from  which  it  purports  to  be  a 
copy  or  extract. 

15.  (1)  Any  person  party  to  a  contract  or  member  of 
a  combination  or  in  any  way  concerned  in  carrying  out 
the  contract  or  the  objects  of  the  combination  may  (a) 
lodge  with  the  attorney  general  a  statutory  declaration  by 
himself,  or  in  the  case  of  a  corporation  by  some  one  ap- 
proved of  in  that  behalf  by  the  attorney  general,  setting 
forth  truly,  fully,  and  completely  the  terms  and  particu- 
lars of  the  contract,  or  the  purposes,  objects,  and  terms  of 
agreement  or  constitution  of  the  combination,  as  the  case 
may  be,  and  an  address  in  Australia  to  which  notices  may 
be  sent  by  the  attorney  general;  and  (£)  publish  the 
statutory  declaration  in  the  Gazette. 

(2)  The  attorney  general  may  at  any  time  send  notice 
to  the  person  above  mentioned  (hereinafter  called  the  de- 
clarant), to  the  address  mentioned  in  the  statutory  decla- 
ration, that  he  considers  the  contract  or  combination 
likely  to  restrain  trade  or  commerce  to  the  detriment  of 


342  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

the  public,  or  to  destroy  or  injure  an  Australian  industry 
by  unfair  competition, 

(3)  In  any  proceeding  against  the  declarant  in  respect 
of  any  offense  against  section  4  of  this  act,  alleged  to  have 
been  committed  by  him  in  relation  to  the  contract  or  com- 
bination after  the  time  the  statutory  declaration  has  been 
lodged  and  published,  and  before  any  notice  as  aforesaid 
has  been  sent  to  him  by  the  attorney  general,  it  shall  be 
deemed  (but  as  regards  the  declarant  only  and  not  as 
regards  any  other  person)  that  the  declarant  had  no 
intent  to  contravene  the  provisions  of  the  section  if  he 
proves  that  the  statutory  declaration  contains  a  true,  full, 
and  complete  statement  of  the  terms  and  particulars  of 
the  contract  or  the  purposes,  objects,  and  terms  of  agree- 
ment or  constitution  of  the  combination,  as  the  case  may 
be,  at  the  date  of  the  statutory  declaration  and  at  the 
date  of  the  alleged  offense. 

15A.  In  any  prosecution  for  an  offense  against  sec- 
tions 4,  7,  7 A,  7B,  or  9  of  this  act  the  averments  of  the 
prosecutor  contained  in  the  information,  declaration,  or 
claim  shall  be  deemed  to  be  proved  in  the  absence  of 
proof  to  the  contrary,  but  so  that  (a)  the  averment  in 
the  information  of  intent  shall  not  be  deemed  sufficient 
to  prove  such  intent;  and  (b)  in  all  proceedings  for  an 
indictable  offense  the  guilt  of  the  defendant  must  be 
established  by  evidence. 

15B.  (1)  If  the  comptroller  general  believes  that  an 
offense  has  been  committed  against  this  part  of  this  act. 
or  if  a  complaint  has  been  made  in  writing  to  the  comp- 
troller general  that  an  offense  has  been  committed  against 
this  part  of  this  act  and  the  comptroller  general  believes 
that  the  offense  has  been  committed,  he  may,  by  writing 
under  his  hand,  require  any  person  whom  he  believes  to 
be  capable  of  giving  any  information  in  relation  to  the 
alleged  offense  to  answer  questions  and  to  produce  docu- 
ments to  him  or  to  some  person  named  by  him  in  relation 
to  the  alleged  offense. 

(2)  No  person  shall  refuse  or  fail  to  answer  questions 
or  produce  documents  when  required  to  do  so  in  pur- 
suance of  this  section. 

Penalty,  £50. 

(3)  The  comptroller  general  or  any  person  to  whom 
any  documents  are  produced  in  pursuance  of  this  section 
may  take  copies  of  or  extracts  from  those  documents. 


AUSTRALIA.  343 

(4)  No  person  shall  be  excused  from  answering  any 
questions  or  producing  any  documents  when  required  to 
do  so  under  this  section  on  the  ground  that  the  answer  to 
the  question  or  the  production  of  the  document  might 
tend  to  criminate  him  or  make  him  liable  to  a  penalty; 
but  his  answer  shall  not  be  admissible  in  evidence  against 
him  in  any  civil  or  criminal  preceding  other  than  a  pro- 
ceeding for  an  offense  against  this  part  of  this  act. 

15C.  (1)  Whenever  a  complaint  on  oath  has  been  made 
in  writing  to  the  comptroller  general  that  any  person 
or  any  foreign  corporation  or  any  trading  or  financial 
corporation  formed  within  the  Commonwealth  has  been 
guilty  of  any  offense  against  this  part  of  this  act,  the 
comptroller  general,  if  he  believes  the  complaint  to  be 
well  founded,  may,  by  writing,  require  any  such  person 
or  foreign  corporation  or  trading  or  financial  corporation 
or  any  member,  officer,  or  agent  of  any  such  corporation, 
to  produce  and  hand  over  to  him  or  to  some  person  ap- 
pointed by  him  in  writing  all  books  and  documents  relat- 
ing to  the  subject  matter  of  the  complaint  and  all  books 
any  documents  of  any  kind  whatsoever  wherein  any  entry 
or  memorandum  appears  in  any  way  relating  to  the  sub- 
ject matter  of  the  complaint. 

(2)  Every  person  or  foreign  corporation  or  trading  or 
financial  corporation  required  by  the  comptroller  general 
as  aforesaid  to  produce  to  him  or  to  some  person  ap- 
pointed by  him  in  writing  any  books  or  documents  shall 
forthwith  produce  and  hand  over  such  books  o*  docu- 
ments accordingly. 

Penalty,  £100. 

(3)  The  comptroller  general  or  any  person  appointed 
by  him  in  writing  may  inspect  all  books  and  documents 
produced  in  pursuance  of  this  section  and  may  make 
copies  of  or  extracts  from  those  books  or  documents." 

15D.  The  comptroller  general  may  impound  or  retain 
any  book  or  document  produced  to  him  or  to  any  person 
so  appointed  by  him  in  pursuance  of  the  preceding  -sec- 
tion, but  the  person  or  corporation  otherwise  entitled  to 
such  book  or  document  shall  in  lieu  thereof  be  entitled  to 
a  copy  certified  as  correct  by  the  comptroller  general,  and 
such  certified  copy  shall  be  receivable  in  all  courts  as  evi- 
dence and  of  equal  validity  with  the  original.  And  until 
such  certified  copy  is  supplied  the  comptroller  general 
may  at  such  times  and  places  as  he  shall  think  proper 
permit  such  person,  or  in  the  case  of  a  corporation  any 


344  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

person  appointed  for  the  purpose  by  the  corporation,  to 
inspect  and  take  extracts  from  the  books  or  documents  so 
impounded  or  retained. 

15E.  No  person  shall  disclose  any  information  gained 
by  him  in  the  exercise  of  the  powers  conferred  by  the  last 
three  preceding  sections  except  (a)  to  the  attorney  gen- 
eral or  some  person  authorized  by  him;  (£>)  to  the  comp- 
troller general;  (c)  when  giving  evidence  in  any  proceed- 
ing for  an  offense  against  this  part  of  this  act. 

Penalty,  £50. 

PART  III. — Prevention  of  dumping? 

16.  Iii  this  part  of  this  act— 

"  Justice  "  means  a  justice  of  the  high  court. 

"  The  comptroller  general "  means  the  comptroller 
general  of  customs. 

"  Imported  goods "  and  "Australian  goods  "  include 
goods  of  those  classes,  respectively,  and  all  parts  or 
ingredients  thereof. 

"  Produced  "  includes  manufactured,  and  "  Producer  " 
includes  manufacturer. 

"  Trade  "  includes  production  of  every  kind. 

"  Industries  "  shall  not  include  industries  in  which,  in 
the  opinion  of  the  comptroller  general  or  justice  as  the 
case  may  be,  the  majority  of  workers  do  not  receive  ade- 
quate remuneration  or  are  subject  to  unfair  terms  or  con- 
ditions of  labor  or  employment. 

IT.  Unfair  competition  has  in  all  cases  reference  to 
competition  with  those  Australian  industries,  the  preser- 
vation of  which,  in  the  opinion  of  the  comptroller  general 
or  a  justice  as  the  case  may  be,  is  advantageous  to  the 
Commonwealth,  having  due  regard  to  the  interests  of 
producers,  workers,  and  consumers. 

18.  (1)  For  the  purposes  of  this  part  of  this  act,  com- 
petition shall  be  deemed  to  be  unfair,  unless  the  contrary 
is  proved,  if  (a)  under  ordinary  circumstances  of  trade 
it  would  probably  lead  to  the  Australian  goods  being  no 
longer  produced  or  being  withdrawn  from  the  market 
or  being  sold  at  a  loss  unless  produced  at  an  inadequate 
remuneration  for- labor;  or  (6)  the  means  adopted  by  the 
person  importing  or  selling  the  imported  goods  are,  in 

1  Acts  of  the  Commonwealth  of  Australia,  1901.  No.  6  of  1901 — An  act 
relating  to  the  customs.  (Assented  to  Oct.  3,  1901.)  Part  I — Introduc- 
tory. 1.  This  act  may  be  cited  as  the  customs  act  of  1901.  *  *  * 
50.  No  prohibited  goods  shall  be  imported.  Penalty,  £100, 


AUSTRALIA.  345 

the  opinion  of  the  comptroller  general  or  a  justice  as  the 
case  may  be,  unfair  in  the  circumstances;  or  (c)  the 
competition  would  probabl}r  or  does  in  fact  result  in  an 
inadequate  remuneration  for  labor  in  the  Australian  in- 
dustry; or  (d)  the  competition  would  probably  or  does 
in  fact  result  in  creating  any  substantial  disorganization 
in  Australian  industry  or  throwing  workers  out  of  em- 
ployment; or  (e)  the  imported  goods  have  been  pur- 
chased abroad  by  or  for  the  importer,  from  the  manu- 
facturer or  some  person  acting  for  or  in  combination  with 
him  or  accounting  to  him,  at  prices  greatly  below  their 
ordinary  cost  of  production  where  produced  or  market 
price  where  purchased;  or  (/)  the  imported  goods  are 
imported  by  or  for  the  manufacturer  or  some  person 
acting  for  or  in  combination  with  him  or  accounting  to 
him,  and  are  being  sold  in  Australia  at  a  price  which  is 
less  than  gives  the  person  importing  or  selling  them  a 
fair  profit  upon  their  fair  foreign  market  value,  or  their 
fair  selling  value  if  sold  in  the  country  of  production, 
together  with  all  charges  after  shipment  from  the  place 
whence  the  goods  are  exported  directly  to  Australia  (in- 
cluding customs  duty). 

(2)  In  determining  whether  the  competition  is  unfair 
regard  shall  be  had  to  the  management,  the  processes,  the 
plant,  and  the  machinery  employed  or  adopted  in  the 
Australian  industry  affected  by  the  competition  being 
reasonably  efficient,  effective,  and  up  to  date. 

19.  (1)  The  comptroller  general,  whenever  he  has  re- 
ceived a  complaint  in  writing  and  has  reason  to  believe 
that  any  person  (hereinafter  called  the  importer),  either 
singly  or  in  combination  with  any  other  person  within  or 
beyond  the  Commonwealth,  is  importing  into  Australia 
goods  (hereinafter  called  imported  goods)  with  intent 
to  destroy  or  injure  any  Australian  industry  by  their  sale 
or  disposal  within  the  Commonwealth  in  unfair  competi- 
tion with  any  Australian  goods,  may  certify  to  the  min- 
ister accordingly. 

(2)  The  certificate  of  the  comptroller  general  shall 
specify  (a)  the  imported  goods;  (b)  the  Australian  in- 
dustry and  goods;  (c)  the  importer;  (d)  the  grounds  or 
unfairness  in  the  competition;  (e)  the  name,  address,  and 
occupation  of  any  person  (not  being  an  officer  of  the  pub- 
lic service)  upon  whose  information  he  may  have  acted. 

(3)  The  comptroller  general  may  add  to  his  certificate 
a  statement  of  such  other  facts  as  in  his  opinion  ought  to 


346  LAWS   ON    TRUSTS   AND    MONOPOLIES. 

be  specified  to  give  the  importer  fair  notice  of  the  matters 
complained  of. 

(4)  The  comptroller  general  shall,  before  making  his 
certificate,  give  to  the  importer  an  opportunity  to  show 
cause  why  the  certificate  should  not  be  made  and  furnish 
him  with  a  copy  of  the  complaint. 

(5)  On  receipt  of  the  certificate  the  minister  may  (a) 
by  order  in  writing  refer  to  a  justice  the  investigation 
and  determination  of  the  question  whether  the  imported 
goods  are  being  imported  with  the  intent  alleged ;  and  if 
so,  whether  the  importation  of  the  goods  should  be  pro- 
hibited, either  absolutely  or  subject  to  any  specified  con- 
ditions or  restrictions  or  limitations;   (4)   notify  in  the 
Gazette  that  the  question  has  been  so  referred;  and  (<?) 
forward  to  the  justice  a  copy  of  the  certificate. 

20.  From  the  date  of  the  Gazette  notice  until  the  pub- 
lication in  the  Gazette  of  the  determination  of  the  ques- 
tion by  the  justice,  goods,  the  subject  of  the  investigation, 
shall  not  be  imported  unless  the  importer  (a)  gives  to  the 
minister  a  bond  with  such  sureties  as  the  minister  ap- 
proves, for  such  amount  (not  exceeding  the  true  value  of 
the  goods  for  customs  purposes)    as  the  minister  con- 
siders just  and  reasonable  by  way  of  precaution  in  the 
circumstances,  and  conditioned  to  be  void  if  the  justice 
determines  the  question  in  favor  of  the  importer;  or  (b) 
gives  such  other  security  and  complies  with  such  other 
conditions  as  the  minister  approves;   and  those  goods 
shall,  if  imported  in  contravention  of  this  section,  be 
deemed  to  be  prohibited  imports  within  the  meaning  of 
the  customs  act  1901,  and  the  provisions  of  that  act  shall 
apply  to  the  goods  accordingly. 

21.  (1)  The  justice  shall  proceed  to  expeditiously  and 
carefully  investigate  and  determine  the  matter,  and  for 
the  purpose  of  the  proceeding  shall  have  power  to  inquire 
as  to  any  goods,  things,  and  matters  whatsoever  which  he 
considers  pertinent,  necessary,  or  material. 

(2)  For  the  purpose  of  the  proceeding  the  justice  shall 
sit  in  open  court,  and  shall  have  all  the  powers  of  a  jus- 
tice in  the  exercise  of  the  ordinary  jurisdiction  of  the 
high  court.  He  may,  if  he  thinks  fit  and  shall  on  the 
application  of  either  party,  state  a  case  for  the  opinion  of 
the  full  court  upon  any  question  of  law  arising  in  the 
proceeding.  And  he  may,  if  he  thinks  fit  at  any  stage 
of  the  proceeding,  refer  the  investigation  and  determina- 


AUSTRALIA.  347 

tion  of  the  matter  to  the  full  court,  which  shall  in  that 
case  have  all  the  powers  and  functions  of  a  justice  under 
this  part  of  this  act. 

(3)  The  certificate  of  the  comptroller  general  shall  be 
prima  facie  evidence  of  facts  by  subsection  (2)  of  section 
19  of  this  act,  required  to  be  specified  therein. 

(4)  In  addition  to  the  comptroller  general  and  the  im- 
porter the  justice  may,  if  he  thinks  fit,  allow  any  person 
interested  in  importing  imported  goods  to  be  represented 
at  the  investigation. 

(5)  The  justice  shall  be  guided  by  good  conscience  and 
the  substantial  merits  of  the  case,  without  regard  to  legal 
forms  or  technicalities,  or  whether  the  evidence  before 
him  is  in  accordance  with  the  law  of  evidence  or  not. 

(6)  No  person  shall  in  any  proceeding  before  a  justice 
be  excused  from  answering  any  question  or  producing 
documents  on  the  ground  that  the  answer  or  production 
may  criminate  or  tend  to  criminate  him,  but  his  answer 
shall  not  be  admissible  in  evidence  against  him  in  any 
criminal  proceeding  other  than  a  prosecution  for  perjury. 

(7)  The  justice  shall  forward  his  determination  to  the 
minister. 

(8)  In  the  case  o*f  the  following  agricultural  imple- 
ments, plows  of  all  kinds  over  li  hundredweight,  tine 
harrows,  disk  harrows,  grain  drills,  combined  grain-seed 
and  manure  drills,  land  rollers,  cultivators,  chaff  cutters, 
seed  cleaners,  stripper  harvesters,  and  any  other  imple- 
ment usually  used  in  agriculture,  the  justice  shall  inquire 
into  and  determine  the  question  whether  the  goods  are 
being  imported  with  the  effect  of  benefiting  the  primary 
producers  without  unfairly  injuring  any  other  section 
of  the  community  of  the  Commonwealth. 

(9)  The  determination  of  the  justice  shall  be  final  and 
conclusive  and  without  appeal  and  shall  not  be  questioned 
in  any  way. 

22.  (1)  Upon  the  receipt  of  the  determination  of  the 
justice  the  minister  shall  forthwith  cause  it  to  be  pub- 
lished in  the  Gazette. 

(2)  If  the  justice  determines  that  the  imported  goods 
are  being  imported  with  the  intent  alleged,  and  that  their 
importation  should  be  prohibited  either  absolutely  or 
subject  to  any  specified  conditions  or  restrictions  or  limi- 
tations of  any  kind  whatsoever  (a)  the  determination 
when  so  published  shall  have  the  effect  of  a  proclamation 


848  LAWS    ON    TEUSTS    AND    MONOPOLIES. 

under  the  customs  act,  1901,  prohibiting  the  importation 
of  the  goods  either  absolutely  or  subject  to  those  condi- 
tions or  restrictions  or  limitations  as  the  case  may  be; 
and  in  that  case  the  provisions  of  that  act  shall  apply  to 
goods  so  prohibited;  and  (&)  the  justice  may  by  order 
reduce  the  amount  recoverable  under  any  bond  given  in 
pursuance  of  this  part  of  this  act  to  such  sum  as  the 
importer  satisfies  him  is  reasonable  and  just  in  the  cir- 
cumstances. 

23.  The  governor  general  may  at  any  time,  by  procla- 
mation, simultaneously  with  or  subsequently  to  any  pro- 
hibition under  this  part  of  this  act,  rescind  in  whole  or 
in  part  the  prohibition  or  any  condition  or  restriction  or 
limitation  on  importation  imposed  thereby. 

24.  In  all  cases  of  prohibition  the  determination  of  the 
justice,  and  any  proclamation  affecting  the  same,  shall 
be   laid  before  both  houses  of  the   Parliament  within 
seven  days  after  the  publication  in  the  Gazette,  or,  if  the 
Parliament  is  not  then  sitting,  within  seven  days  after 
the  next  meeting  of  Parliament. 

25.  The  justices  of  the  high  court  or  a  majority  of 
them  may  make  rules  of  court  not  inconsistent  with  this 
act,  for  regulating  the  proceedings  before  a  justice  under 
this  part  of  this  act  and  for  carrying  this  part  of  this 
act  into  effect. 

26.  (1)   Any  person  who  willfully   (a)   makes  to  the 
comptroller  general   or   to   any   officer  of  customs   any 
false  statement  in  relation  to  any  action  or  proceedings 
taken  or  proposed  to  be  taken  under  this  part  of  this  act ; 
or  (&)  misleads  the  comptroller  general  in  any  particular 
likely  to  affect  the  discharge  of  his  duty  under  this  act 
shall  be  guilty  of  an  offense. 

Penalty,  £100  or  12  months'  imprisonment, 
(2)  Any  person  convicted  under  the  last  preceding  sub- 
section may  be  ordered  by  the  justice  to  whom  a  question 
is  referred  under  this  part  of  this  act  to  pay  the  whole 
or  part  of  the  costs  incurred  by  the  importer  in  whose 
favor  the  question  is  determined. 


AUSTRALIA. 


349 


EXCISE   TARIFF. 

[No.  16  of  1906.] 

AN  ACT  Relating  to  duties  of  excise.1 
[Assented  to  Oct.  12,  1906.] 

Be  it  enacted  ~by  the  King^s  Most  Excellent  Majesty,  the 
Senate  and  the  House  of  Representatives  of  the  Com- 
monwealth of  Australia,  as  follows  : 

1.  This  act  may  be  cited  as  the  excise  tariff,  1906.  short  title. 

2.  Duties  of  excise  shall  on  and  from  the  1st  day  of< 
January,  1907.  be  imposed  on  the  dutiable  goods  specified  machinery. 
in  the  schedule  at  the  rates  specified  in  the  said  schedule. 

Provided,  That  this  act  shall  not  apply  to  goods  manu- 
factured by  any  person  in  any  part  of  the  Commonwealth 
under  conditions  as  to  the  remuneration  of  labor  which 
(a)  are  declared  by  resolution  of  both  houses  of  the  Par- 
liament to  be  fair  and  reasonable;  or  (b)  are  in  accord- 
ance with  an  industrial  award  under  the  Commonwealth 
conciliation  and  arbitration  act,  1094;  or  (<?)  are  in  ac- 
cordance with  the  terms  of  an  industrial  agreement  filed 
under  the  Commonwealth  conciliation  and  arbitration 
act,  1904;  or  (d)  are,  on  an  application  made  for  the  pur- 
pose to  the  president  of  the  Commonwealth  court  of  con- 
ciliation and  arbitration,  declared  to  be  fair  and  reason- 
able by  him  or  by  a  judge  of  the  supreme  court  of  a  State 
or  any  person  or  persons  who  compose  a  State  industrial 
authority  to  whom  he  may  refer  the  matter. 

THE   SCHEDULE. 

Excise  duties. 


Dutiable  goods. 


FIXED  RATES. 


Stripper  harvesters...  ..................................  each.. 

Strippers  ...............................................................  do.... 

Metal  parts  of  stripper  harvesters  and  strippers  ...................  per  pound.  . 


AD  VALOREM  RATES.  ' 

Stump-jump  plows  .................................................  per  cent. 

Disk  cultivators  ........................................................  do 

Winnowers,  horse  and  other  power  .....................................  do 

Combined  corn  sheller,  husker,  and  bagger  ..............................  do 

Combined  corn  sheller  and  husker  ......................................  do 

Drills: 

Fertilizer  ...........................................................  do 

Seed  ................................................................  do 


Grain  ...............................................................  do 

And  attachments  thereto  .......................................  do. 


Duties. 


£6 
£3 


12* 


1  The  act  relating  to  agricultural  machinery   (No. '16  of  1906)   was  de- 
clared unconstitutional  by  the  high  court  in  July,  1908. 


350  LAWS   ON    TRUSTS   AND    MONOPOLIES. 

Excise  duties — Continued. 


Dutiable  goods.  Duties 


AD  VALOREM  BATES— continued. 

Plows,  other per  cent. 

Plowshares do . . . 

Harrows , do. . . 

Chaff  cutters  and  horse  gear . .  .do. 


Cultivators,  other  than  disk do. 

Scarifiers do. 

Plow  moldboards do 

Cornshellers do. 

Corn  buskers do. 


10 


EXEMPTIONS. 

Hand-worked  rakes  and  plows  combined. 
Hay  tedders. 
Maize  harvesters. 
Maize  binders. 
Maize  planters. 

Moldboard  plates  in  the  rough  and  not  cut  into  shape. 
Potato  sorters. 
Potato  raisers  or  diggers. 
(Commonwealth  Acts:  Australia,  vol.  5, 1906,  No.  16,  p.  59.) 

THE  PATENTS  ACT   19O3. 

[No.  21  of  1903.     As  amended  by  the  patents  act  1906  (No.  19  of  1906), 
and  by  the  patents  act  1909  (No.  17  of  1909).] 

AN  ACT  Relating  to  patents  of  inventions. 
[Assented  to  Oct.  22,  1903.] 

PART  V. — Working  of  patents  and  compulsory  licenses. 

Compulsory  87.  (1)  Any  person  interested  may,  after  the  expira- 
Bdw.  7,  c.  '34,  tion  of  two  years  from  the  granting  of  the  patent,  present 
a  petition  to  the  commissioner  alleging  that  the  reason- 
able requirements  of  the  public  with  respect  to  a  patented 
invention  have  not  been  satisfied  and  praying  for  the 
grant  of  a  compulsory  license,  or,  in  the  alternative,  for 
the  revocation  of  the  patent. 

(2)  The  commissioner  shall  consider  the  petition,  and 
if  the  parties  do  not  come  to  an  arrangement  between 
themselves,  the  commissioner,  if  satisfied  that  a  prima 
facie  case  has  been  made  out,  shall  refer  the  petition  to 
the  high  court  or  the  supreme  court,  and  if  the  commis- 
sioner is  not  so  satisfied  he  may  dismiss  the  petition. 

(3)  Where  any  such  petition  is  referred  by  the  com- 
missioner to  the  high  court  or  the  supreme  court,  and  it 
is  proved  to  the  satisfaction  of  the  court  that  the  reason- 
able requirements"  of  the  public  with  reference  to  the 
patented  invention  have  not  been  satisfied,  the  patentee 
may  be  ordered,  by  rule  or  order,  to  grant  licenses  on  such 
terms  as  the  said  court  thinks  just,  or  if  the  court  is  of 


AUSTKALIA.  351 

opinion  that  the  reasonable  requirements  of  the  public 
will  not  be  satisfied  by  the  grant  of  licenses  the  court 
may  order  the  revocation  of  the  patent. 

Provided,  that  no  order  of  revocation  shall  be  made 
before  the  expiration  of  three  years  from  the  date  of  the 
patent  or  if  the  patentee  gives  satisfactory  reasons  for 
his  default. 

(4)  On  the  hearing  of  any  petition  under  this  section 
the  patentee,  and  any  person  claiming  an  interest  in  the 
patent  as  exclusive  licensee  or  otherwise,  shall  be  made 
parties  to  the  proceedings,  and  the  commissioner  shall  be 
entitled  to  appear  and  be  heard. 

*****  Subsec.     (5) 

omitted ;      No. 

(6)  For  the  purposes  of  this  section  the  reasonable  re-  17%71Edw  S71c' 
quirements  of  the  public  shall  not  be  deemed  to  have  been  29' s- 24  <5>- 
satisfied  (a)  if,  by  reason  of  the  default  of  the  patentee  hySu^80tltut1^ 
(1)  to  manufacture  to  an  adequate  extent  and  supply  on  1009-  8-  14- 
reasonable  terms  the  patented  article  or  any  parts  thereof, 

which  are  necessary  for  its  efficient  working,  or  (2)  to 
carry  on  the  patented  process  to  an  adequate  extent,  or 
(3)  to  grant  licenses  on  reasonable  terms;  any  existing 
trade  or  industry,  or  the  establishment  of  any  new  trade 
or  industry,  in  Australia  is  unfairly  prejudiced;  or  the 
demand  for  the  patented  article  or  the  article  produced 
by  the  patented  process  is  not  reasonably  met;  or  (b)  if 
any  trade  or  industry  in  Australia  is  unfairly  prejudiced 
by  the  conditions  attached  by  the  patentee,  before  or 
after  the  commencement  of  this  subsection,  to  the  pur- 
chase, hire,  or  use  of  the  patented  article,  or  to  the  using 
or  working  of  the  patented  process. 

(7)  A  rule  or  order  directing  the  grant  of  any  license 
under  this  section  shall,  without  prejudice  to  any  other 
method  of  enforcement,  operate  as  if  it  were  embodied  in 
a  deed  granting  a  license  and  made  between  the  parties  to 
the  proceeding. 

87a.   (1)  At  any  time  not  less  than  four  years  after  the  w 
date  of  a  patent,  and  not  less  than  two  years  after  the  j*  ^ 
commencement  of  this  section,  any  person  may  apply  to  ^Xt0eij£ 
the  high  court  or  the  supreme  court  for  an  order  declar-  wealth- 
ing  that  the  patented  article  or  process  is  not  manufac- 
tured or  carried  on  to  an  adequate  extent  in  the  Common- 
wealth. 

(2)  If,  on  the  hearing  of  the  application,  the  court  is 
satisfied  that  the  patented  article  or  process  is  manufac- s 
tured  or  carried  on  exclusively  or  mainly  outside  the 


352  LAWS   ON    TKUSTS   AND   MONOPOLIES. 

Common  wealth,  then,  subject  to  the  provision  of  this  sec- 
tion, and  unless  the  patentee  proves  that  the  article  or 
process  is  manufactured  or  carried  on  to  an  adequate 
extent  in  the  Commonwealth,  or  gives  satisfactory  reasons 
why  the  articles  or  process  is  not  so  manufactured  or 
carried  on,  it  shall  make  the  order  applied  for,  to  take 
effect  either  (a)  forthwith  or  (b)  at  the  expiration  of 
such  reasonable  time  as  is  specified  in  the  order,  unless  in 
the  meantime  it  is  shown  to  the  satisfaction  of  the  court 
that  the  patented  article  or  process  is  manufactured  or 
carried  on  to  an  adequate  extent  in  the  Commonwealth : 

Provided,  that  no  such  order  shall  be  made  which  is  at 
variance  with  any  treaty,  convention,  arrangement,  or 
engagement  with  any  foreign  country  or  part  of  the 
King's  dominions. 

(3)  If,  within  the  time  specified  in  the  order,  the  pat- 
ented article  or  process  is  not  manufactured  or  carried  on 
to  an  adequate  extent  in  the  Commonwealth,  but  the  pat- 
entee gives  satisfactory  reasons  why  it  is  not  so  manu- 
factured or  carried  on,  the  court  may  make  a  further 
order  extending  the  time  so  specified  for  any  specified 
time  not  exceeding  12  months. 

(4)  From  and  after  the  time  when  an  order  under  sub- 
section (2)  of  this  section  takes  effect  the  patent  shall  not 
be  deemed  to  be  infringed  by  the  manufacture  or  carry- 
ing on  in  the  Commonwealth  of  the  patented  article  or 
process  or  by  the  vending  within  the  Commonwealth  of 
the  patented  article  made  within  the  Commonwealth. 

(5)  If  at  any  time  after  the  making  of  an  order  under 
subsection   (2)   of  this  section  the  court  is  satisfied  that 
the  patented  article  or  process  is  not  manufactured  or 
carried  on  in  the  Commonwealth  by  any  other  person 
than  the  patentee,  and  that  the  patentee  is  manufacturing 
it  or  carrying  it  on  to  an  adequate  extent  in  the  Common- 
wealth, the  court  may  in  its  discretion,  if  it  thinks  it  just 
so  to  do,  revoke  the  order,  which  shall  thenceforth  cease 
to  have  effect. 

(6)  In  any  case  in  which  the  court  is  empowered  by 
this  section  to  make  an  order  under  subsection  (2)  there- 
of, it  may,  in  its  discretion,  if  it  thinks  it  just  so  to  do, 
instead  of  making  such  an  order,  order  the  patentee  to 
grant  a  compulsory  license  to  the  applicant  on  such  terms 
as  the  court  thinks  just. 

(7)  In  any  proceedings  under  this  section  the  court 
may  make  such  order  as  to  costs  as  it  thinks  just,  and 


AUSTKALIA.  353 

may  order  the  applicant  to  give  such  security  as  it  thinks 
just  for  the  costs  of  the  proceedings  and  of  any  appeal 
therefrom,  and  in  default  of  such  security  being  given 
within  the  time  specified  by  the  order  the  proceedings  or 
appeal  shall  be  deemed  to  be  abandoned. 

875.   (1)  It  shall  not  be  lawful  in  any  contract  made    Avoidance  of 

J  .  certain     condi- 

after  the  commencement  of  this  section  in  relation  to  the  *!<>"*  attached 

to      the      sale, 

sale  or  lease  of.  or  license  to  use  or  work,  any  article  or  etc..  of  patent- 

J  ed   articles.      7 

process  protected  by  patent,  to  insert  a  condition  the  Bdw.  7,  c.  29, 


effect  of  which  would  be  (a)  to  prohibit  or  restrict  the    Ins]e7ted19(J)<f 
purchaser,  lessee,  or  licensee  from  using  any  article  or  s.  in. 
class  of  articles  or  process,  whether  patented  or  not,  sup- 
plied or  owned  by  any  person  other  than  the  seller,  lessor, 
or  licensor,  or  his  nominees;  or  (b)  to  require  the  pur- 
chaser, lessee,  or  licensee  to  acquire  from  the  seller,  lessor, 
or  licensor,  or  his  nominees,  any  article  or  class  of  articles 
not  protected  by  the  patent ;  and  any  such  condition  shall 
be  null  and  void : 

Provided,  that  this  subsection  shall  not  apply  if  (1) 
the  seller,  lessor,  or  licensor  proves  that,  at  the  time  the 
contract  was  entered  into,  the  purchaser,  lessee,  or  licensee 
had  the  option  of  purchasing  the  article  or  obtaining  a 
lease  or  license  on  reasonable  terms,  without  any  such 
condition;  and  (2)  the  contract  entitles  the  purchaser, 
lessee,  or  licensee  to  relieve  himself  of  his  liability  to 
observe  any  such  condition  on  giving  the  other  party  three 
months'  notice  in  writing,  and  on  payment  in  compensa- 
tion for  such  relief  in  the  case  of  a  purchase  of  such  sum, 
or  in  the  case  of  a  lease  or  license  of  such  rent  or  royalty 
for  the  residue  of  the  term  of  the  contract,  as  may  be  fixed 
by  an  arbitrator  appointed  by  the  minister. 

(2)  Any  contract  relating  to  the  lease  of  or  license  to 
use  or  work  any  patented  article  or  patented  process, 
whether  made  before  or  after  the  commencement  of  this 
section,  may  at  any  time  after  the  patent  or  all  the  patents 
by  which  the  article  or  process  was  protected  at  the  time 
of  the  making  of  the  contract  has  or  have  ceased  to  be  in 
force,  and  notwithstanding  anything  in  the  same  or  in 
any  other  contract  to  the  contrary,  be  determined  by 
either  party  on  giving  three  months'  notice  in  writing  to 
the  other  party. 

(3)  Any  contract  made  before  the  commencement  of 
this  section  relating  to  the  lease  of  or  license  to  use  or 
work  any  patented  article  or  process,  and  containing  any 
condition  which,  had  the  contract  been  made  after  the 

16491—13 23 


354  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

commencement  of  this  section,  would  by  virtue  of  this 
section  have  been  null  and  void,  may,  at  any  time  before 
the  contract  is  determinable  under  the  last  preceding  sub- 
section, and  notwithstanding  anything  in  the  same  or 
any  other  contract  to  the  contrary,  be  determined  by 
either  party  on  giving  three  months'  notice  in  writing  to 
the  other  party. 

(4)  Where  under  either  of  the  two  last  preceding  sub- 
sections any  notice  is  given  determining  a  contract  made 
before  the  commencement  of  this  section,  the  party  giving 
the  notice  shall  be  liable  to  pay  such  compensation  as, 
failing   agreement,   may   be   awarded   by   an   arbitrator 
appointed  by  the  minister. 

(5)  The  insertion  by  the  patentee  in  a  contract,  made 
after  the  commencement  of  this  section,  of  any  condi- 
tion which  by  virtue  of  this  section  is  null  and  void,  shall 
be  available  as  a  defense  to  an  action  for  infringement 
of  the  patent,  to  which  the  contract  relates,  brought  while 
that  contract  is  in  force. 

(6)  Nothing  in  this  section  shall  (a)  affect  any  con- 
dition in  a  contract  Avhereby  a  person  is  prohibited  from 
selling  any  goods  other  than  those  of  a  particular  person ; 
or   (Z>)   be  construed  as  validating  any  contract  which 
would,  apart  from  this  section,  be  invalid;  or  (c)  affect 
any  right  of  determining  a  contract  or  condition  in  a 
contract   exercisable   independently   of  this   section;   or 
(d)  affect  any  condition  in  a  contract  for  the  lease  of  or 
license  to  use  a  patented  article,  whereby  the  lessor  or 
licensor  reserves  to  himself  or  his  nominees  the  right  to 
supply  such  new  parts  of  the  patented  article  as  may  be 
required  to  put  or  keep  it  in  repair. 

(Australia,    Commonwealth   Acts,    1909,   vol.    8,   The 
Patents  Act,  Pt.  V,  pp.  269  to  273.) 


CANADA. 

CRIMINAL   LAW   OF   CANADA  RELATIVE   TO   RE- 
STRAINTS  OF  TRADE  AND   COMPETITION. 

OFFENSES    CONNECTED    WITH    TRADE    AND    BREACHES    OF 
CONTRACT. 

496.  A  conspiracy  in  restraint  of  trade  is  an  agreement 
between  two  or  more  persons  to  do  or  procure  to  be  done  trade 
any  unlawful  act  in  restraint  of  trade.     (55-56  V,  c.  29, 

s.  516.) 

497.  The  purposes  of  a  trade  union  are  not,  bv  reason     Avt!?   in   re- 

1  '      •-•  stralnt  not  un- 

merely  that  they  are  in  restraint  of  trade,  unlawful  within  'a^fui. 
the  meaning  of  the  last  preceding  section.     (55-56  V. 
c.  29,  s.  517.) 

498.  Every  one  is  guilty  of  an  indictable  offense  and     i>enjlt:y    for 
liable  to  a  penalty  not  exceeding  $4,000  and  not  less  than 

$200,  or  to  two  years'  imprisonment,  or,  if  a  corporation, 
is  liable  to  a  penalty  not  exceeding  $10,000  and  not  less 
than  $1,000,  who  conspires,  combines,  agrees,  or  arranges 
with  any  other  person,  or  with  any  railway,  steamship, 
steamboat,  or  transportation  company — 

(a)  To  unduly  limit  the  facilities  for  transporting.     TO    limit 

-.  *»  ,     .  .  -IT         transportation 

producing,  manufacturing,  supplying,  storing,  or  dealing  facilities, 
in  any  article t  or  commodity  which  may  be  subject  of 
trade  or  commerce ;  or, 

(b)  To  restrain  or  injure  trade  or  commerce  in  relation     Restrain 

_          , .    ,  n . ,  commerce. 

to  any  such  article  or  commodity;  or, 

(c)  To  unduly  prevent,  limit,  or  lessen  the  manufac-    Lessen  man- 

,       ,/  -  ,.    ,  ufacturlng. 

ture  or  production  of  any  such  article  or  commodity,  or 
to  unreasonably  enhance  the  price  thereof;  or, 

(d)  To  unduly  prevent  or  lessen  competition  in  the    ^essen  com" 
production,  manufacture,  purchase,  barter,  sale,  trans- 
portation, or  supply  of  any  such  article  or  commodity. 

or  in  the  price  of  insurance  upon  person  or  property. 

2.  Nothing  in  this  section  shall  be  construed  to  apply    saving, 
to  combinations  of  workmen  or  employees  for  their  own 
reasonable  protection   as  such  workmen  or  employees. 
(63-64  V,  c.  46,  s.  3.) 

355 


356  LAWS   ON    TKUSTS   AND   MONOPOLIES. 

(Revised  Statutes  of  Canada,  1906,  Vol.  Ill,  chap.  146, 
'  sees.  496-498,  p.  2549.) 

CANADIAN   LEGISLATION   CONCERNING   PATENTS. 


vaHditdiotfi°c°r1     ^"  ^e  validity  of  any  patent  granted  before  the  13th 
t  a  i  n   patents  day  of  August,  1903,  shall  not  be  impeached,  nor  shall 

granted    before        *  &        '  ' 

Aug.  is,  1903.  such  patent  be  deemed  to  have  lapsed  or  expired  by  rea- 
son of  the  failure  of  the  patentee  to  construct  or  manu- 
facture the  patented  invention,  if  the  patentee  within  the 
period  of  two  years  from  the  date  of  the  patent  allowed 
for  such  construction  or  manufacture,  or  within  an  au- 
thorized extension  of  that  period,  became,  and  at  all  times 
thereafter  continued  to  be,  ready  either  to  furnish  the 
patented  invention  himself  or  to  license  the  right  of 
using  it,  on  reasonable  terms,  to  any  person  desiring  to 
use  it,  and  if  the  patentee,  or  his  legal  representatives, 
within  six  months  from  the  13th  day  of  August,  1903, 
had- 

(a)  Commenced,  and  after  such  commencement  con- 
tinuously carried  on  in  Canada,  the  construction  or  man- 
ufacture of  the  patented  invention  in  such  manner  as 
to  enable  any  person  desiring  to  use  it  to  obtain  it,  or 
cause  it  to  be  made  for  him,  at  a  reasonable  price,  at  some 
manufactory  or  establishment  for  making  or  constructing 
it  in  Canada  ;  or, 

(/>)  Applied  for  and  thereupon  obtained  an  order  of 
the  commissioner  making  the  patent  subject  to  the  con- 
dition hereinafter  provided  for  authorizing  application 
for  the  issue  of  licenses  to  make,  construct,  use,  and  sell 
the  patented  invention.  (3  E.  VII.,  c.  46,  s.  10.) 
Rights  of  43.  In  the  case  of  any  patent  which  before  the  13th  day 
saved.  E  Q6>  of  August,  1903,  had  become  void  or  the  validity  of 
which  might  have  been  impeached,  and  which  was  re- 
vived or  protected  from  impeachment  by  any  provision 
of  the  act.  passed  in  the  third  year  of  His  Majesty's 
reign,  chapter  46,  entitled  "An  act  to  amend  the  patent 
act,"  or  which,  by  reason  of  any  such  provision,  is  to  be 
deemed  not  to  have  elapsed  or  expired,  any  person  who 
had,  between  the  time  when  fcuch  patent  became  void  or 
the  ground  for  such  impeachment  arose,  and  the  13th  day 
of  August,  1903,  aforesaid,  commenced  to  manufacture, 
use,  or  sell  in  Canada  the  invention  covered  by  such  pat- 
ent, may  continue  to  manufacture,  use,'  or  sell  it  in  as  full 
and  ample  a  measure  as  if  such  revival  or  protection  from 


CANADA.  357 

impeachment  had  not  been  effected ;  and,  in  case  any  per- 
son had,  before  the  13th  day  of  August  aforesaid,  con- 
tracted with  the  owner  of  the  patent  for  the  right  to 
manufacture,  use,  or  sell  such  invention  in  Canada,  the 
contract  shall  be  deemed  to  have  remained  in  full  force 
and  effect,  notwithstanding  that  the  patent  had  become 
void  as  aforesaid,  unless  the  person  who  had  so  con- 
tracted with  such  owner  can  show  that  in  the  meantime, 
by  reason  or  on  the  faith  of  such  invalidity  or  lapsing,  he 
has  materially  altered  his  position  with  respect  to  such 
invention,  and  that  the  revival  of  such  contract  would 
cause  him  damage.  (3  E.  VII.,  c.  46.  s.  14.) 

44.  On  the  application  of  the  applicant  for  a  patent  whgjn^^ioj| 
previous  to  the  issue  thereof,  or  on  the  application  within  substituted. 
six  months  after  the  issue  of  a  patent  of  the  patentee  or 
his  legal  representatives,  the  commissioner,  having  regard 
to  the  nature  of  the  invention,  may  order  that  such  patent 
instead  of  being  subject  to  the  condition  with  respect  to 
the  construction  and  manufacture  of  the  patented  inven- 
tion hereinbefore  provided,  shall  be  subject  to  the  follow- 
ing conditions,  that  is  to  say : 

(a)  Any  person,  at  any  time  while  the  patent  continues     Application 

.      \  .      .  ....  by   any   person 

in  force,  may  apply  to  the  commissioner  by  petition  for  to  use  patent, 
a  license  to  make,  construct,  use,  and  sell  the  patented 
invention,  and  the  commissioner  shall,  subject  to  general 
rules  which  may  be  made  for  carrying  out  this  section, 
hear  the  person  applying  and  the  owner  of  the  patent, 
and,  if  he  is  satisfied  that  the  reasonable  requirements  of 
the  public  in  reference  to  the  invention  have  not  been 
satisfied  by  reason  of  the  neglect  or  refusal  of  the  patentee 
or  his  legal  representatives  to  make,  construct,  use,  or 
sell  the  invention,  or  to  grant  licenses  to  others  on  reason- 
able terms  to  make,  construct,  use,  or  sell  the  same,  may 
make  an  order  under  his  hand  and  the  seal  of  the  Patent  CoSmimioner! f 
Office  requiring  the  owner  of  the  patent  to  grant  a  license 
to  the  person  applying  therefor  in  such  form  and  upon 
such  terms  as  to  the  duration  of  the  license,  the  amount 
of  the  royalties,  security  for  payment,  and  otherwise  as 
the  commissioner,  having  regard  to  the  nature  of  the 
invention  and  the  circumstances  of  the  case,  deems  just; 

(&)  The  commissioner  may.  if  he  thinks  fit,  and  shall     Assessors- 
on  the  request  of  either  of  the  parties  to  the  proceedings, 
call  in  the  aid  of  an  assessor,  specially  qualified,  and  hear 
the  case  wholly  or  partially  with  his  assistance; 


358  LAWS    ON    TRUSTS   AND   MONOPOLIES. 

one1  nrceenhse      (c^  The  existence  of  one  or  more  licenses  shall  not  be  a 
may  be  gran  ted.  Dar  to  an  order  by  the  commissioner  for  or  to  the  grant- 
ing of  a  license  on  any  application  under  this  section; 
and 

p  ft?nturfeo0r  (d)  The  patent  and  all  rights  and  privileges  thereby 
iiecfeUn?el.t0  srant  Srante(i  shall  cease  and  determine  and  the  patent  shall 
be  null  and  void  if  the  commissioner  makes  an  order 
requiring  the  owner  of  the  patent  to  grant  any  license 
and  the  owner  of  the  patent  refuses  or  neglects  to  comply 
with  such  order  within  three  calendar  months  next  after 
a  copy  of  it  is  addressed  to  him  or  to  his  duly  authorized 
agent.  (3  E.  VII,  c.  46,  s.  7.) 

th?efexcnequer  45.  Any  question  which  arises  as  to  whether  a  patent 
or  any  interest  therein  has  or  has  not  become  void  under 
any  of  the  provisions  of  the  seven  last  preceding  sections 
of  this  act  may  be  adjudicated  upon  by  the  exchequer 
court  of  Canada,  which  court  shall  have  jurisdiction  to 
decide  any  such  questions  upon  information  in  the  name 
of  the  attorney  general  of  Canada  or  at  the  suit  of  any 
person  interested;  but  this  section  shall  be  not  held  to 
of  othre1rscoutritsn  ta^e  awav  or  affect  the  jurisdiction  which  any  court  other 
than  the  exchequer  court  of  Canada  possesses.  (3  E.  VII, 
c.  46,  s.  8.) 

(Kevised  Statutes  of  Canada,  1906,  Vol.  II,  chap.  69, 
sees.  42,  43,  44,  and  45.) 

CONCERNING  BOOKS. 

^*  ^  a  book  as  to  which  there  is  subsisting  copyright 


Cwfadactlonlnim(^er  tn^s  act  ^as  ^)een  ^rst  l^fully  published  in  any 
part  of  His  Majesty's  dominions,  other  than  Canada,  and 
if  it  is  proved  to  the  satisfaction  of  the  minister  that  the 
owner  of  the  copyright  so  subsisting  and  of  the  copyright 
acquired  by  such  publication  has  lawfully  granted  a 
license  to  reproduce  in  Canada,  from  movable  or  other 
types,  or  from  stereotype  plates,  or  from  electroplates,  or 
from  lithograph  stones,  or  by  any  process  for  facsimile 
reproduction,  an  edition  or  editions  of  such  book  designed 

i^w?immo/  ^or  sa*e  onty  *n  Canada,  tne  m™ster  may,  notwithstand- 

totion.  ing  anything  in  this  act,  by  order  under  his  hand,  pro- 

hibit the  importation  into  Canada,  except  with  the  writ- 

ten consent  of  the  licensee,  of  any  copies  of  such  book 

Proviso.        printed  elsewhere  ;  provided  that  two  such  copies  may  be 

specially  imported  for  the  bona  fide  use  of  any  public 

free  library  or  any  university  or  college  library,  or  for  the 


CANADA.  359 

library  of  any  duly  incorporated  institution  or  society 
for  the  use  of  the  members  of  such  institution  or  society. 
(63-64  V,  c.  25,  s.  1.) 

29.  The  minister  may  at  any  time  in  like  manner,  by  re^P^on  JJJ 
order  under  his  hand,  suspend  or  revoke  such  prohibition  prohibition. 
upon  importation  if  it  is  proved  to  his  satisfaction  that — 

(a)  The  license  to  reproduce  in  Canada  has  terminated 
or  expired;  or 

(b)  The  reasonable  demand  for  the  book  in  Canada  is 
not  sufficiently  met  without  importation;  or 

(c)  The  book  is  not,  having  regard  to  the  demand 
therefor  in  Canada,  being  suitably  printed  or  published ; 
or 

(d)  Any  other  state  of  things  exists  on  account  of 
which  it  is  not  in  the  public  interest  to  further  prohibit 
importation.     (63-64  Y,  c.  25,  s.  2.) 

30.  At  any  time  after  the  importation  of  a  book  has  T^ir£i¥otiu- 
been  so  prohibited,  any  person  resident  or  being  in  Can-  jj*  e$Jf0yn  of 
ada  may  apply,  either  directly  or  through  a  bookseller 

or  other  agent,  to  the  person  so  licensed  to  reproduce  such 
book,  for  a  copy  of  any  edition  of  such  book  then  on  sale 
and  reasonably  obtainable  in  the  United  Kingdom  or  any 
other  part  of  His  Majesty's  dominions,  and  it  shall  there- 
upon be  the  duty  of  the  person  so  licensed,  as  soon  as  rea- 
sonably may  be,  to  import  and  sell  such  copy  to  the  per- 
son so  applying  therefor,  at  the  ordinary  selling  price  of 
such  copy  in  the  United  Kingdom,  or  such  other  part  of 
His  Majesty's  dominions,  with  the  duty  and  reasonable 
forwarding  charges  added. 

2.  The  failure  or  neglect,  without  lawful  excuse,  of  the  p  ^^IMUO" 
person  so  licensed  to  supply  such  copy  within  a  reasonable  may  be  revoked. 
time  shall  be  a  reason  for  which  the  minister  may,  if  he 
sees  fit,  suspend  or  revoke  the  prohibition  upon  importa- 
tion.    (63-64  V,  c.  25,  s.  3.) 

(Revised  Statutes  of  Canada,  Vol.  II,  1906,  chap.  70, 
sees.  28,  29,  30.) 

LICENSES. 

17.  No  person,  unless  licensed  as  herein  provided,  shall  wh?cnisn4yenot 
carry  on  the  business  or  trade  of  a  distiller,  rectifier,  com-  ^  j^Jj16^  u°t 
pounder,  brewer  or  malster,  manufacturer  of  tobacco  or  license, 
cigars,  or  bonded  manufacturer,  or  use  any  utensil,  ma- 
chinery, or  apparatus  suitable  for  carrying  on  any  such 
trade  or  business,  or  any  business  subject  to  excise,  or  im- 
port, make,  or  begin  to  make  any  still,  rectifier,  or  other 
apparatus  suitable  for  the  manufacture  of  wash,  beer,  or 


360  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

spirits,  or  for  the  rectification  or  compounding  of  spirits. 
(K.  S.,  c.  34,  s.  9.) 

(Revised  Statutes  of  Canada,  1906.  Vol.  II.  chap.  51. 
sec.  17.) 

[4  Edward  VII,  chap.  17.] 

AN  ACT  To  amend  tbe  inland  revenue  act. 
[Assented  to  Aug.  10,  1904.] 

His  Majesty,  by  and  with  the  advice  and  consent  of 
the  Senate  and  House  of  Commons  of  Canada,  enacts  as 
follows  : 

*'  ^e  ^nlan(^  revenue  act,  chapter  34  of  the  Revised 
Statutes,  is  amended  by  inserting  the  following  section 
immediately  after  section  96: 
oLrlefeeSi'tt0eb|     "  96a-  The   minister   of   inland    revenue   ma      declare 


any  license  authorized  by  this  act  in  any  case 
r  wnere  a  person  who,  being  a  manufacturer  of  any  class 
of  goods  subject  to  a  duty  of  excise,  either  directly  or 
indirectly  (a)  makes  a  sale  of  any  such  goods,  or  consigns 
them  for  sale  upon  commission,  to  another  person,  sub- 
ject to  the  condition  that  the  purchaser  or  the  consignee 
shall  not  sell  or  deal  in  goods  of  a  like  kind  produced  by. 
or  obtained  or  to  be  obtained  from,  any  other  manu- 
facturer or  dealer;  or  (b)  makes  a  sale  of  any  such  goods, 
or  consigns  them  for  sale  upon  commission,  to  another 
person,  upon  such  terms  as  would,  in  their  application, 
give  more  profit  to  the  purchaser  or  the  consignee  if  he 
should  not  sell  or  deal  in  goods  of  a  like  kind  produced 
by,  or  obtained  or  to  be  obtained  from,  any  other  manu- 

feiNotice  of  for-  f  acturer  or  dealer,  and  the  collector  of  inland  revenue 
shall  thereupon  cause  a  notice  of  such  forfeiture  to  be 

ofCforfe?tif?o  es  forthwith  inserted  in  The*  Canada  Gazette,  and  from  and 
after  the  insertion  thereof  the  license  shall  be  null  and 
void,  and  no  new  license  shall  be  granted  to  such  person. 
and  no  license  shall  be  granted  to  any  other  person  for 
carrying  on  any  business  in  the  premises  occupied  by 
him  until  the  minister  of  inland  revenue  is  satisfied  that 
the  dealings  above  referred  to  have  ceased. 

miSiescteSr°to  °f     "  2'  Tne  decision  of  the  minister  of  inland  revenue  as 

anal.  to  whether  any  sale  or  consignment  of  goods  is,  or  is  not, 

subject  to  any  such  conditions,  or  upon  any  such  terms, 
as  is  or  are  defined  in  subsection  1  of  this  section  shall 
be  final." 

(Statutes  of  Canada,  4  Edw.  VII,  1904.  Vols.  I  and  II, 
chap  17.) 


CANADA.  ;H) 

POWER  OF  THE  GOVERNOR  IX  COUNCIL  TO   REDUCE  DUTIES  OR 
PLACE  ON   FREE  LIST. 

18.  Whenever  the  governor  in  council  has  reason  to  be-  .lu}u^ulr-v  hy 
lieve  that  with  regard  to  any  article  of  commerce  there 
exists  any  trust,  combination,  association,  or  agreement 
of  any  kind  among  manufacturers  of  the  article  or  deal- 
ers therein  to  unduly  enhance  the  price  of  the  article,  or 
in  any  other  way  to  unduly  promote  the  advantage  of 
the  manufacturers  or  dealers  at  the  expense  of  the  con- 
sumers, the  governor  in  council  may  commission  or  em 
power  any  judge  of  the  supreme  court  of  Canada  or  of 
the  exchequer  court  of  Canada,  or  of  any  superior  court 
in  any  Province  of  Canada,  to  inquire  in  a  summary  way 
into  and  report  to  the  governor  in  council  whether  such 
trust,  combination,  association,  or  agreement  exists. 

2.  The  judge  may  compel  the  attendance  of  witnesses. 
and  examine  them  under  oath,  and  require  the  produc- 
tion of  books  and  papers,  and  shall  have  such  other  neces- 
sary powers  as  are  conferred  upon  him  by  the  governor 
in  council  for  the  purposes  of  such  inquiry. 

3.  If  the  judge  reports  that  such  trust,  combination, 
association,  or  agreement  exists,  and  if  it  appears  to  the 
governor  in  council  that  the  disadvantage  to  the  consum- 
ers is  facilitated  by  the  duties  of  customs  imposed  on  a 
like  article  when  imported,  then  the  governor  in  council 
shall  place  the  article  on  the  free  list,  or  so  reduce  the 
duty  on  it  as  to  give  to  the  public  the  benefit  of  reason- 
able competition  in  such  article.     (60-61  V.,  c.  16,  s.  18.) 

(Revised  Statutes  of  Canada,  1906,  vol.  1,  p.  834.) 
12  Whenever,  from  or  as  a  result  of  a  judgment  ol'aljj°  ^ 
the  supreme  court  or  exchequer  court  of  Canada,  or  of  l'u's- 
any  superior  court,  or  circuit,  district,  or  county  court  in 
Canada,  it  appears  to  the  satisfaction  of  the  governor  in 
council  that  with  regard  to  any  article  of  commerce  there 
exists  any   conspiracy,  combination,   agreement,   or   ar 
rangement  of  any  kind  among  manufacturers  of  such  ar- 
ticles or  dealers  therein  to  unduly  promote  the  advantage 
of  the  manufacturers  or  dealers  at  the  expense  of  the  con- 
sumers, the  governor  in  council  may  admit  the  article 
free  of  duty,  or  so  reduce  the  duty  thereon  as  to  give  the 
public  the  benefit  of  reasonable  competition  in  the  article, 
if  it  appears  to  the  governor  in  council  that  such  disad- .-  o  v  e' r  n 
vantage  to  the  consumer  is  facilitated  by  the  duties  of  ln  c'ouncil- 
customs  imposed  on  a  like  article. 

(Repealed  by  sec.  47,  combines  investigation  act,  1910.) 


362 


LAWS    ON    TRUSTS   AND    MONOPOLIES. 


judge0111  by  2-  Whenever  the  governor  in  council  deems  it  to  be  in 
the  public  interest  to  inquire  into  any  conspiracy,  combi- 
nation, agreement,  or  arrangement  alleged  to  exist  among 
manufacturers  or  dealers  in  any  article  of  commerce  to 
unduly  promote  the  advantage  of  the  manufacturers  or 
dealers  in  such  article  at  the  expense  of  the  consumers,  the 
governor  in  council  may  commission  or  empower  any 
judge  of  the  supreme  court  or  of  the  exchequer  court  of 
Canada,  or  of  any  superior  court  or  county  court  in  Can- 
ada, to  hold  an  inquiry  in  a  summary  way  and  report  to 
the  governor  in  council  whether  such  conspiracy,  combi- 
nation, agreement,  or  arrangement  exists. 

Evidence.  3.  The  judge  may  compel  the  attendance  of  witnesses 
and  examine  them  under  oath  and  require  the  production 
of  books  and  papers,  and  shall  have  such  other  necessary 
powers  as  are  conferred  upon  him  by  the  governor  in 
council  for  the  purpose  of  such  inquiry. 

R  e  p  o  r  t  of     4.  If  the  judge  reports  that  such  conspiracy,  combina- 
tion, agreement,  or  arrangement  exists  in  respect  of  such 
p  o  w  e  r  s  of  article,  the  governor  in  council  may  admit  the  article  free 

|cmnclirn  there1- of  duty,  or  so  reduce  the  duty  thereon  as  to  give  to  the 
public  the  benefit  of  reasonable  competition  in  the  article^ 
if  it  appears  to  the  governor  in  council  that  such  disad- 
vantage to  the  consumer  is  facilitated  by  the  duties  of 
customs  imposed  on  a  like  article. 

(Canada,  The  Customs  Tariff,  1907,  chap.  11,  sec.  12.) 

COMBINES    INVESTIGATION    ACT. 

[9-10  Edward  VII,  chap.  9.] 

AN  ACT  To  provide  for  the  investigation  of  combines,  monopolies, 
trusts,  and  mergers. 

[Assented  to  May  4,  1910.] 

His  Majesty,  by  and  with  the  advice  and  consent  of 
the  Senate  and  House  of  Commons  of  Canada,  enacts 
as  follows: 

1.  This  act  may  be  cited  as  the  "  combines  investigation 
act." 


from. 


Short   title. 


INTERPRETATION . 

Definitions.        9    Ill  this  act,  unless  the  context  otherwise  requires— 
Application.       (a)   "Application  "  means  an  application  to  a  judge 
for  an  order  directing  an  investigation  under  the  provi- 
sions of  this  act; 


CANADA. 


363 


(b)  "Board"  means  a  board  of  investigation  estab- 
lished under  the  provisions  of  this  act ; 

(c)  "  Combine "  means  any  contract,  agreement,  ar-     r°mbine. 
rangement,  or  combination  which  has,  or  is  designed  to 

have,  the  effect  of  increasing  or  fixing  the  price  or  rental 
of  any  article  of  trade  or  commerce  or  the  cost  of  the 
storage  or  transportation  thereof,  or  of  the  restricting 
competition  in  or  of  controlling  the  production,  manufac- 
ture, transportation,  storage,  sale,  or  supply  thereof,  to 
the  detriment  of  consumers  or  producers  of  such  article 
of  trade  or  commerce,  and  includes  the  acquisition,  leas- 
ing, or  otherwise  taking  over,  or  obtaining  by  any  per- 
son to  the  end  aforesaid,  of  an}7  control  over  or  interest 
in  the  business  or  any  portion  of  the  business  of  any 
other  person,  and  also  includes  what  is  known  as  a  trust, 
monopoly,  or  merger; 

(d)  "  Department  "  means  the  department  of  labor; 

(e)  "  Judge  "  means,  in  the  Province  of  Ontario,  any 
judge  of  the  high  court  of  justice;  in  the  Province  of  Que- 
bec, any  judge  of  the  superior  court;  in  the  Provinces  of 
Nova  Scotia,  New  Brunswick,  British  Columbia,  Prince 
Edward  Island,  Saskatchewan,  and  Alberta,  any  judge 
of  the  supreme  court;  in  the  Province  of  Manitoba,  any 
judge  of  the  court  of  King's  bench;  and  in  the  Yukon 
Territory,  any  judge  of  the  territorial  court ; 

(/)  "  Minister  "  means  the  minister  of  labor; 

(g)  "  Order  "  means  an  order  of  a  judge  under  the     order, 
provisions  of  this  act; 

(k)  "Prescribed"  means  prescribed  by  this  act  or  by 
any  rule  or  regulation  made  thereunder; 

(i)  "  Registrar  "  means  the  registrar  of  boards  of  in- 
vestigation appointed  under  this  act. 


Depart  meat. 
Judge* 


Minister. 


Prescribed. 


Itogistrar. 


ADMINISTRATION . 

3.  The  minister  shall  have  the  general  administration  ti  •1Y.lmInistra' 
of  this  act. 

4.  The  governor  in  council  shall  appoint  a  registrar  of  b(  .^fslstrai'  of 
boards  of  investigation,  who  shall  have  the  powers  and 
perform  the  duties  prescribed. 

(2)   The  office  of  registrar  may  be  held  either  sepa->eAtP and*  t<4- 
rately  or  in  conjunction  with  any  other  office  in  the  public  ure  of  office- 
service,  and  in  the  latter  case  the  registrar  may,  if  the 
governor  in  council  thinks  fit,  be  appointed  by  reference 
to  such  other  office,  whereupon  the  person  who  for  the 


;if)4  LAWS    OX    TRUSTS    AND    MONOPOLIES. 

time  being  holds  such  office  or  performs  its  duties  shall, 
by  virtue  thereof  and  without  thereby  being  entitled  to 
any  additional  remuneration,  be  the  registrar. 

ORDER   FOR  INVESTIGATION. 

order  for  in-      5.  Where  six  or  more  persons,  British  subjects  resident 

vestigatton. 

in  Canada  and  of  full  age,  are  of  opinion  that  a  combine 
exists,  and  that  prices  have  been  enhanced  or  competition 
restricted  by  reason  of  such  combine,  to  the  detriment  of 
consumers  or  producers,  such  persons  may  make  an  appli- 
cation to  a  judge  for  an  order  directing  an  investigation 
into  such  alleged  combine. 

r, -r\rd\M-c:Jltion  (^)  Such  application  shall  be  in  writing  addressed  to 
the  judge,  and  shall  ask  for  an  order  directing  an  investi- 
gation into  the  alleged  combine,  and  shall  also  ask  the 
judge  to  fix  a  time  and  place  for  the  hearing  of  the  appli- 
cants or  their  respresentative. 

i>iicatSn°f  ap  (3)  The  application  shall  be  accompanied  by  a  state- 
ment setting  forth— 

(a)  The  nature  of  the  alleged  combine  and  the  persons 
believed  to  be  concerned  therein; 

(b)  The  manner  in  which  the  alleged  combine  affects 
prices  or  restricts  competition,  and  the  extent  to  which 
the  alleged  combine  is  believed  to  operate  to  the  detri- 
ment of  consumers  or  producers; 

(<?)  The  names  and  addresses  of  the  parties  making  the 
application  and  the  name  and  address  of  one  of  their 
number  or  of  some  other  person  whom  they  authorize  to 
act  as  their  representative  for  the  purposes  of  this  act 
and  to  receive  communications  and  conduct  negotiations 
on  their  behalf. 

of  applicants011  (4)  The  application  shall  also  be  accompanied  by  a 
statuton*  declaration  from  each  applicant  declaring  that 
the  alleged  combine  operates  to  the  detriment  of  the 
declarant  as  a  consumer  or  producer,  and  that  to  the  best 
of  his  knowledge  and  belief  the  combine  alleged  in  the 
statement  exists  and  that  such  combine  is  injurious  to 
trade  or  has  operated  to  the  detriment  of  consumers  or 
producers  in  the  manner  and  to  the  extent  described, 
and  that  it  is  in  the  public  interest  that  an  investigation 
should  be  had  into  such  combine. 

•u>§?cat?ogn  °f  ^  ^iti"11  10  days  after  the  judge  receives  the  appli- 
cation he  shall  fix  a  time  and  place  for  hearing  the  appli- 
cants and  shall  send  due  notice,  by  registered  letter,  to 


CANADA.  365 

the  representative  authorized  by  the  statement  to  receive 
communications  on  behalf  of  the  applicants.  At  such 
hearing  the  applicants  may  appear  in  person  or  by  their 
representative  or  by  counsel. 

7.  If  upon  such  hearing  the  judge  is  satisfied  that  there  veSi^fi on1  by 
is  reasonable  ground  for  believing  that  a  combine  exists  ^udse- 
which  is  injurious  to  trade  or  which  has  operated  to  the 
detriment  of  consumers  or  producers,  and  that  it  is  in  the 

public  interest  that  an  investigation  should  be  held,  the 
judge  shall  direct  an  investigation  under  the  provisions 
of  this  act;  or  if  not  so  satisfied,  and  the  judge  is  of 
opinion  that  in  the  circumstances  an  adjournment  should  Adjourn- 

.  .  .  mont    for    fur- 

be  ordered,  the  ]udge  may  adjourn  such  hearing  until  ther  evidence. 

further  evidence  in  support  of  the  application  is  given, 
or  he  may  refuse  to  make  an  order  for  an  investigation. 

(2)  The  judge  shall  have  all  the  powers  vested  in  the  jiu{l0ewers  of 
court  of  which  he  is  a  judge  to  summon  before  him  and 
enforce  the  attendance  of  witnesses,  to  administer  oaths, 
and  to  require  witnesses  to  give  evidence  on  oath  or  on 
solemn  affirmation  (if  they  are  persons  entitled  to  affirm 
in  civil  matters),  and  to  produce  such  books,  papers,  or 
other  documents  or  things  as  the  judge  deems  requisite. 

8.  The  order  of  the  judge  directing  an  investigation    Transmission 

n  ,  .  .&  .&  _  of     order     and 

shall  be  transmitted  by  him  to  the  registrar  by  registered  evidence  to  reg- 

letter,  and  shall  be  accompanied  by  the  application,  the 

statement,  a  certified  copy  of  any  evidence  taken  before 

the  judge,  and  the  statutory  declarations.     The  order 

shall  state  the  matters  to  be  investigated,  the  names  of  the 

persons  alleged  to  be  concerned  in  the  combine,  and  the 

names  and  addresses  of  one  or  more  of  their  number  with 

whom,  in  the  opinion  of  the  judge,  the  minister  should 

communicate  in  order  to  obtain  the  recommendation  for 

the  appointment  of  a  person  as  a  member  of  the  board 

as  hereinafter  provided. 

APPOINTMENT  OF  BOARDS. 

9.  Upon  receipt  by  the  registrar  of  the  order  directing  of'^!r,!dntment 
an  investigation  the  minister  shall  forthwith  proceed  to 

appoint  a  board. 

10.  Every  board  shall  consist  of  three  members,  whoof  f,ioa?(i!tlUion 
shall  be  appointed  by  the  minister  under  his  hand  and 

seal  of  office. 

11.  Of  the  three  members  of  the  board  one  shall  bebo^mbors    of 
appointed  on  the  recommendation  of  the  persons  upon 


366 


LAWS    OX    TRUSTS    AKD    MONOPOLIES. 


whose  application  the  order  has  been  granted,  one  on  the 
recommendation  of  the  persons  named  in  the  order  as 
being  concerned  in  the  alleged  combine,  and  the  third  on 
the  recommendation  of  the  two  members  so  chosen. 

ti?nc°5m  third      12'  ^e  Persons  upon  whose  application  the  order  has 

member.  been  granted  and  the  persons  named  in  the  order  as  being 

concerned  in  the  alleged  combine,  within  seven  days  after 
being  requested  so  to  do  by  the  registrar,  may  each  re- 
spectively recommend  the  name  of  a  person  who  is  will- 
ing and  .ready  to  act  as  a  member  of  the  board,  and  the 
minister  shall  appoint  such  persons  members  of  the  board. 
communica-  (2)  For  the  purpose  of  obtaining  the  recommendations 

resentatives  of  referred  to  in  subsection  1  of  this  section  it  shall  be  suffi- 
cient, as  respects  the  applicants,  for  the  registrar  to  com- 
municate with  the  representative  mentioned  in  the  state- 
ment as  authorized  to  receive  communications  on  their 
behalf,  and  as  respects  the  persons  concerned  in  the 
alleged  combine  it  shall  be  sufficient  for  the  registrar  to 
communicate  with  the  persons  named  in  the  order  as  the 
persons  with  whom  the  minister  should  communicate  for 
this  purpose. 

(3)  If  the  parties,  or  either  of  them,  fail  or  neglect  to 
make  any  recommendation  within  the  said  period,  or 
such  extension  thereof  as  the  minister,  on  cause  shown. 
grants,  the  minister  shall,  as  soon  thereafter  as  possible. 
select  and  appoint  a  fit  person  or  persons  to  be  a  member 
or  members  of  the  board. 

W  The  two  members  so  appointed  may,  within  seven 
thrd  4ays  a^er  their  appointment,  recommend  the  name  of  a 

member.  judge  of  any  court  of  record  in  Canada  who  is  willing 

and  ready  to  act  as  a  third  member  of  the  board,  and  the 
minister  shall  appoint  such  judge  as  a  member  of  the 
board,  and  if  they  fail  or  neglect  to  make  a  recommenda- 
tion within  the  said  period,  or  such  extension  thereof  as 
the  minister  on  cause  shown  grants,  the  minister  shall. 
as  soon  thereafter  as  possible,  select  and  appoint  a  judge 
of  any  court  of  record  in  Canada  to  be  the  third  member 
of  the  board. 
chairman.  5  The  third  member  of  the  board  shall  be  its  chair- 


terwmeay 


man. 


vacancies. 


members. 


(6)  A  vacancy  in  the  membership  of  a  board  shall  be 
filled  in  the  same  manner  as  an  original  appointment  is 
made. 

das     ^'  ^°  Person  sna^  act  as  a  member  of  the  board  who 
jg  one  of  fae  applicants  for  the  board  or  who  has  any 


CANADA.  367 

direct  pecuniary  interest  in  the  alleged  combine  that  is 
the  subject  of  investigation  by  such  board,  or  who  is  not 
a  British  subject. 

14.  As  soon  as  possible  after  all  the  members  of  the  S0n£eiof  board" 
board  have  been  appointed  by  the  minister  the  registrar 

shall  notify  the  parties  of  the  names  of  the  chairman  and 
other  members  of  the  board. 

15.  Before  entering  upon  the  exercise  of  the  functions    Oath  of  office. 
of  their  office  the  members  of  the  board  shall  take  the 
following  oath: 

I,  -       — ,  do  solemnly  swear — 

That  I  will  truly,  faithfully,  and  impartially  perform 
my  duties  as  a  member  of  the  board  appointed  to  in- 
vestigate   . 

That  I  am  a  British  subject. 

That  I  have  no  direct  pecuniary  interest  in  the  alleged 
combine  that  is  to  be  the  subject  of  investigation. 

That  I  have  not  received  nor  will  I  accept,  either 
directly  or  indirectly,  any  perquisite,  gift,  fee,  or  gratuity 
from  any  person  in  any  way  interested  in  any  matter  or 
thing  to  be  investigated  by  the  board. 

That  I  am  not  immediately  connected  in  business  with 
any  of  the  parties  applying  for  this  investigation,  and 
am  not  acting  in  collusion  with  any  person  herein. 

16.  The  department  may   provide  the  board  with   a 
stenographer  and  such  clerical  and  other  assistance  as  to  board- 
the  minister  appears  necessary  for  the  efficient  carrying 

out  of  the  provisions  of  this  act.  The  department  shall 
also  repay  any  reasonable  and  proper  disbursements  made 
or  authorized  and  certified  by  the  judge  who  grants  the 
order  directing  the  investigation. 

17.  Upon  the  appointment  of  the  board  the  registrar  m(Co  m 
shall  forward  to  the  chairman  copies  of  the  application,  tigation. 
statement,  evidence,  if  any,  taken  before  the  judge,  and 
order  for  investigation,  and  the  board  shall  forthwith 
proceed  to  deal  with  the  matters  referred  to  therein. 

INQUIRY  AND  REPORT. 

18.  The  board  shall  expeditiously,  fully,  and  carefully     inquiry. 
inquire  into  the  matters  referred  to  it  and  all  matters 
affecting  the  merits  thereof,  including  the  question  of 
whether  or  not  the  price  or  rental  of  any  article  con- 
cerned has  been  unreasonably  enhanced,  or  competition 

in  the  supply  thereof  unduly  restricted,  in  consequence 


368  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

Report  to min- Of  a  combine,  and  shall  make  a  full  and  detailed  report 

istov 

thereon  to  the  minister,  which  report  shall  set  forth  the 
various  proceedings  and  steps  taken  by  the  board  for  the 
purpose  of  fully  and  carefully  ascertaining  all  the  facts 
and  circumstances  connected  with  the  alleged  combine, 
including  such  findings  and  recommendations  as,  in  the 
opinion  of  the  board,  are  in  accordance  with  the  merits 
and  requirements  of  the  case. 
scoi>.«  of  m-  (2)  In  deciding  any  question  that  may  affect  the  scope 

valuation.  /-    xi        •  ir       j-  v.          j      u    n  -j 

or  extent  of  the  investigation,  the  board  shall  consider 
what  is  required  to  make  the  investigation  as  thorough 
and  complete  as  the  public  interest  demands. 

K  ««P  o  i  i  of  19.  Xhe  board's  report  shall  be  in  writing,  and  shall  be 
signed  by  at  least  two  of  the  members  of  the  board.  The 
report  shall  be  transmitted  by  the  chairman  to  the  regis- 
trar, together  Avith  the  evidence  taken  at  such  investiga- 
tion certified  by  the  chairman,  and  any  documents  and 
papers  remaining  in  the  custody  of  the  board.  A  minor- 
ity report  may  be  made  and  transmitted  to  the  registrar 
by  any  dissenting  member  of  the  board. 

publication  of  20.  Upon  receipt  of  the  board's  report  and  of  the 
minority  report,  if  any,  a  copy  thereof  shall  be  sent  free 
of  charge  to  the  parties  and  to  the  representative  of  any 
newspaper  in  Canada  who  applies  therefor,  and  the 
report  and  minority  report,  if  any,  shall  also  be  pub- 

mstributionLLshed  without  delay  in  the  Canada  Gazette.     The  min- 

of  copirs.  J 

ister  n  ay  distribute  copies  of  the  report,  and  of  any 
minority  report,  in  such  manner  as  to  him  seems  most 
desirable,  as  a  means  of  securing  a  compliance  with  the 

i  i  iip<7 \>opU( >er"  board's  recommendations.  The  registrar  shall,  upon  pay- 
ment of  such  fees  as  may  be  prescribed,  supply  a  certified 
copy  of  any  report  or  minority  report  to  any  person 
applying  for  it. 

custom^Ctduties  ^1.  Whenever,  from  or  as  a  result  of  an  investigation 
pe-  under  the  provisions  of  this  act,  or  from  or  as  a  result  of 
a  judgment  of  the  supreme  court  or  exchequer  court  of 
Canada  or  of  any  superior  court,  or  circuit,  district,  or 
county  court  in  Canada,  it  appears  to  the  satisfaction  of 
the  governor  in  council  that  with  regard  to  any  article 
there  exists  any  combine  to  promote  unduly  the  advan- 
tage of  the  manufacturers  or  dealers  at  the  expense  of  the 
consumers,  and  if  it  appears  to  the  governor  in  council 
(hat  such  disadvantage  to  the  consumer  is  facilitated  by 
the  duties  of  customs  imposed  on  the  article,  or  on  any 
like  article,  the  governor  in  council  may  direct  either  that 


CANADA.  369 

such  article  be  admitted  into  Canada  free  of  duty  or  that 
the  duty  thereon  be  reduced  to  such  amount  or  rate  as 
will,  in  the  opinion  of  the  governor  in  council,  give  the 
public  the  benefit  of  reasonable  competition. 

22.  In  case  the  owner  or  holder  of  any  patent  issued 
under  the  patent  act  has  made  use  of  the  exclusive  rights tai 
and  privileges  which,  as  such  owner  or  holder  he  con- 
trols, so  as  unduly  to  limit  the  facilities  for  transporting, 
producing,  manufacturing,  supplying,  storing,  or  deal- 
ing in  any  article  which  may  be  a  subject  of  trade  or 
commerce,  or  so  as  to  restrain  or  injure  trade  or  commerce 
in  relation  to  any  such  article,  or  unduly  to  prevent, 
limit,  or  lessen  the  manufacture  or  production  of  any 
article  or  unreasonably  to  enhance  the  price  thereof,  or 
unduly  to  prevent  or  lessen  competition  in  the  produc- 
tion, manufacture,  purchase,  barter,  sale,  transportation, 
storage,  or  supply  of  any  article,  such  patent  shall  be 
liable  to  be  revoked.     And,  if  a  board  reports  that  a  pat-  court 
ent  has  been  so  made  use  of,  the  minister  of  justice  may 
exhibit  an  information  in  the  exchequer  court  of  Canada 
praying  for  a  judgment  revoking  such  patent,  and  the 
court  shall  thereupon  have  jurisdiction  to  hear  and  de- 
cide the  matter  and  to  give  judgment  revoking  the  pat- 
ent or  otherwise  as  the  evidence  before  the  court  may 
require. 

23.  Any  person  reported  by  a  board  to  have  been  guilty 
of  unduty  limiting  the  facilities  for  transporting,  pro- 
ducing,  manufacturing,  supplying,  storing,  or  dealing  in 
any  article  which  may  be  a  subject  of  trade  or  commerce; 
or  of  restraining  or  injuring  trade  or  commerce  in  rela- 
tion to  any  such  article;  or  of  unduly  preventing,  limit- 
ing, or  lessening  the  manufacture  or  production  of  any 
such   article;   or   of  unreasonably   enhancing  the   price 
thereof;  or  of  unduly  preventing  or  lessening  competi- 
tion in  the  production,  manufacture,  purchase,  barter, 
siile,  transportation,  storage,  or  supply  of  any  such  ar- 
ticle, and  who  thereafter  continues  so  to  offend,  is  guilty 
of  an  indictable  offense  and  shall  be  liable  to  a  penalty 
not  exceeding  $1.000  and  costs  for  each  day  after  the  ex- 
piration of  10  days,  or  such  further  extension  of  time  as 
in  the  opinion  of  the  board  may  be  necessary,  from  the 
date  of  the  publication  of  the  report  of  the  board  in  the 
Canada  Gazette  during  which  such  person  so  continues  to 
offend. 

16491—13 24 


370  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

SITTINGS   OF   BOARD. 

|  siMinLs  of  24.  The  sittings  of  the  board  shall  be  held  at  such 
times  and  places  as  are  fixed  by  the  chairman,  after  con- 
sultation with  the  other  members  of  the  board,  and  the 
parties  shall  be  notified  by  the  chairman  as  to  the  times 
jind  places  at  which  sittings  are  to  be  held ;  provided  that, 
so  far  as  practicable,  the  board  shall  sit  in  the  locality 
within  which  the  subject  matter  of  the  proceedings  be- 
fore it  arose. 

Proceedings.  25.  The  proceedings  of  the  board  shall  be  conducted  in 
public,  but  the  board  may  order  that  any  portion  of  the 
proceedings  shall  be  conducted  in  private. 

Decisions.          26.  The  decision  of  any  two  of  the  members  present  at 

a  sitting  of  the  board  shall  be  the  decision  of  the  board. 

Quorum.  27.  The  presence   of  the  chairman   and   at   least  one 

other  member  of  the  board  shall  be  necessary  to  constitute 

i\  sitting  of  the  board. 

member!66  °f  28-  ^n  case  °^  the  absence  of  any  one  member  from  a 
meeting  of  the  board  the  other  two  members  shall  not 
proceed,  unless  it  is  shown  that  the  absent  member  has 
been  notified  of  the  meeting  in  ample  time  to  admit  of 
his  attendance. 

paiS.1  ance°f  29.  Any  party  to  an  investigation  may  appear  before 
the  board  in  person  or  may  be  represented  by  any  other 
person  or  persons,  or,  with  the  consent  of  the  board,  may 
be  represented  by  counsel. 

appointed  ""  by      30-  Whenever  in  the  opinion  of  the  minister  the  public 

minister.  interest  so  requires,  the  minister  may  apply  to  the  min- 
ister of  justice  to  instruct  counsel  to  conduct  the  investi- 
gation before  a  board,  and  upon  such  application  the 
minister  of  justice  may  instruct  counsel  accordingly. 
The  fees  and  expenses  allowed  to  such  counsel  by  the 
minister  of  justice  shall  be  paid  out  of  such  appropria- 
tions as  are  made  by  Parliament  to  provide  for  the  cost 
of  administering  this  act. 

boardltempt  °f  ^1-  -^>  in  any  Procee(iings  before  the  board,  any  person 
willfully  insults  any  member  of  the  board,  or  willfully 
interrupts  the  proceedings,  or  without  good  cause  refuses 
to  give  evidence,  or  is  guilty  in  any  other  manner  of  any 
willful  contempt  in  the  face  of  the  board,  any  officer  of 
the  board,  or  any  constable  may  take  the  person  offending 
into  custody  and  remove  him  from  the  precincts  of  the 
board,  to  be  detained  in  custody  until  the  conclusion  of 
that  day's  sitting  of  the  board,  and  the  person  so  offend- 


CANADA.  371 

ing  shall  be  liable,  upon  summar}^  conviction,  to  a  penalty     penalty. 
not  exceeding  $100. 

WITNESSES    AND    EVIDENCE. 

32.  For  the  purposes  of  an  investigation  the  board  shall   Ayitnesses  and 
have  all  powers  which  are  vested  in  any  court  of  record  *A 

in  civil  cases  for  the  following  purposes,  namely:  The 
summoning  of  witnesses  before  it,  and  enforcing  their 
attendance  from  any  part  of  Canada,  of  administering 
oaths,  and  of  requiring  witnesses  to  give  evidence  on  oath 
or  on  solemn  affirmation  (if  they  are  persons  entitled  to 
affirm  in  civil  matters),  and  to  produce  such  books,  pa- 
pers, or  other  documents  or  things  as  the  board  deems 
requisite  to  the  full  investigation  of  the  matters  into 
which  it  is  inquiring. 

(2)  Any  member  of  the  board  may  administer  an  oath.     Oath- 

(3)  Summonses  to  witnesses  and  all  other  orders,  proc-  ,  signature  of 

chairman. 

ess,  and  proceedings  shall  be  signed  by  the  chairman. 

33.  All  books,  papers,  and  other  documents  or  things  (1J^ection  of 
produced  before  the  board,  whether  voluntarily  or  in  pur- 
suance of  summons,  may  be  inspected  by  the  board,  and 

also  by  such  parties  as  the  board  allows. 

84.  Any  party  to  the  proceedings  shall  be  competent    .Parties   as 
and  may  be  compelled  to  give  evidence  as  a  witness. 

35.  Every  person  who  is  summoned  and  duly  attends     Expenses   of 

•  it  it  t>  i    witnesses. 

as  a  witness  shall  be  entitled  to  an  allowance  for  attend- 
ance and  traveling  expenses  according  to  the  scale  in  force 
with  respect  to  witnesses  in  civil  suits  in  the  superior 
courts  of  the  Province  in  which  the  inquiry  is  being  con- 
ducted. 

36.  If  any  person  who  has  been  duly  served  with  a  sum-  ^Jess^to  at- 
mons  and  to  whom  at  the  time  of  service  payment  or  JeJcerd5 cu°- 
tender  has  been  made  of  his  reasonable  traveling  expenses  ments- 
according  to  the  aforesaid  scale,  fails  to  attend  or  to  pro- 
duce any  book,  paper,  or  other  document  or  thing  as  re- 
quired by  his  summons,  he  shall,  unless  he  shows  that 

there  was  good  and  sufficient  cause  for  such  failure,  be 

guilty  of  an  offense  and  liable  upon  summary  conviction     Penalty. 

to  a  penalty  not  exceeding  $100. 

37.  The  board  may,  with  the  consent  of  the  minister,     experts. 
employ  competent  experts  to  examine  books  or  official 
reports,  and  to  advise  it  upon  any  technical  or  other  mat- 
ter material  to  the  investigation,  but  the  information  ob- 
tained therefrom  shall  not,  except  in  so  far  as  the  board 


372  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

deems  it  expedient,  be  made  public,  and  such  parts  of 
the  books,  papers,  or  other  documents  as  in  the  opinion 
of  the  board  are  not  material  to  the  investigation  may 
be  sealed  up. 

REMUNERATION    AND    EXPENSES    OF    BOARD. 

oS?deration  38.  The  members  of  a  board  shall  be  remunerated  for 
their  services  as  follows : 

(a)  To  the  two  members  first  appointed  an  allowance 
of  $5  each  per  day  for  a  time  not  exceeding  three  days 
during  which  they  may  be  actually  engaged  in  selecting 
the  third  member  of  the  board. 

(ft)  To  each  member  an  allowance  at  the  rate  of  $20 
for  each  day's  sitting  of  the  board. 

pensr?svellnsex"  39-  Each  member  of  the  board  shall  be  entitled  to  his 
actual  and  necessary  traveling  expenses  and  an  allowance 
of  $10  per  day  for  each  day  that  he  is  engaged  in  travel- 
ing from  or  to  his  place  of  residence  for  the  purpose  of 
attending  or  after  having  attended  a  meeting  of  the 
board. 

grltfi1tyan°pTO-     40.  No  member  of  the  board  shall  accept,  in  addition  to 

nibited.  fas  traveling  expenses  and  allowances  as  a  member  of  the 

board,  any  perquisite,  gift,  fee,  or  gratuity  of  any  kind 
from  any  person  in'  any  way  interested  in  any  matter  or 
thing  that  is  being  investigated  by  the  board.  The  ac- 
ceptance of  any  such  perquisite,  gift,  fee,  or  gratuity  by 
any  member  of  the  board  shall  be  an  offense,  and  shall 
Penalty.  render  such  member  liable  upon  summary  conviction  to  a 
fine  not  exceeding  $1,000,  and  he  shall  thereafter  be  dis- 
qualified to  act  as  a  member  of  any  board. 

expenses ers  f or  41.  All  expenses  of  the  board,  including  expenses  for 
transportation  incurred  by  the  members  thereof  or  by 
persons  under  its  order  in  making  investigations  under 
this  act,  salaries  of  employees  and  agents,  and  fees  and 
traveling  expenses  of  witnesses,  shall  be  allowed  and 
paid  upon  the  presentation  of  itemized  vouchers  therefor, 
approved  and  certified  by  the  chairman  of  the  board, 
which  vouchers  shall  be  forwarded  by  the  chairman  to 
Detailed  the  registrar.  The  chairman  shall  also  forward  to  the 

statement      of 

sittings.  registrar  a  certified  and  detailed  statement  of  the  sit- 

tings of  the  boaVd  and  of  the  members  present  at  each 
of  such  sittings. 


CANADA.  373 

MISCELLANEOUS. 

42.  No  proceedings  under  this  act  shall  be  deemed  in-  reguiuitet  " 
valid  by  reason  of  any  defect  of  form  or  any  technical 
irregularity. 

43.  Evidence  of  a  report  of  a  board  may  be  given  in  re  ^rit(lence   of 
any  court  by  the  production  of  a  copy  of  the  Canada 

Gazette  purporting  to  contain  a  copy  of  such  report,  or 
by  the  production  of  a  copy  of  the  report  purporting  to 
be  certified  by  the  registrar  to  be  a  true  copy. 

44.  The    minister   shall    determine   the    allowance   or    Allowances 

determined     by 

amounts  to  be  paid  to  all  persons,  other  than  the  mem-  minister. 
bers  of  a  board  emplo}^ed  by  the  Government,  or  any 
board,  including  the  secretaries,  clerks,  experts,  stenog- 
raphers, or  other  persons  performing  any  services  under 
the  provisions  of  this  act. 

45.  The  governor  in  council  mav  make  such  regulations. ,   "emulations 

*?  •  liy  governor  in 

not  inconsistent  with  this  act,  as  to  him  seem  necessary  Council. 
for  carrying  out  the  provisions  of  this  act  and  for  the 
efficient  administration  thereof. 

(2)  Such  regulations  shall  be  published  in  the  Canada 
Gazette,  and  upon  being  so  published  they  shall  have  the 
same  force  as  if  they  formed  part  of  this  act. 

(3)  The  regulations  shall  be  laid  before  both  Houses 

of  Parliament  within  15  days  after  such  publication  if  ment 
Parliament  is  then  sitting,  and  if  Parliament  is  not  then 
sitting  then  within  15  days  after  the  opening  of  the  next 
session  thereof. 

46.  The  minister  shall  lay  before  Parliament,  within 
the  first  15  days  of  the  then  next  session,  an  annual  re-  ment 
port  of  the  proceedings  under  this  act.        • 

47.  Subsection  1  of  section  12  of  the  customs  tariff.  anSd.0'  llf 
1907,  is  repealed. 

48.  This  act  shall  not  be  construed  to  repeal,  amend,     K  s  • c  125> 
or  in  any  way  affect  the  trade-unions  act,  chapter  125 

of  the  Revised  Statutes,  1906. 

SCHEDULE. 
[Form  1.] 

APPLICATION   FOE  ORDER  DIRECTING   AN   INVESTIGATION. 

[The  combines  investigation  act,  sec.  5.] 

Dated  at  -     — ,  this day  of  -     — ,  19—. 

In  the  matter  of  an  alleged  combine   (here  state  shortly  the 
nature  of  the  combine). 


374  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

To  the  honorable  (here  insert  the  name  of  the  judge),  a  judge 
(or  chief  justice  as  the  case  may  be)  of  the  (here  insert  the  title 
of  the  court). 

The  undersigned  are  of  opinion  that  a  combine  exists  (here 
state  shortly  the  nature  of  the  alleged  combine)  and  that  prices 
have  been  enhanced  (or  competition  has  been  restricted  by  such 
combine,  as  the  case  may  be)  to  the  detriment  of  consumers  (or 
producers,  as  the  case  may  be). 

The  undersigned  therefore  apply  for  an  order  under  "  the  com- 
bines investigation  act "  directing  an  investigation  into"  such 
alleged  combine. 

(Here  state — (a)  the  nature  of  the  alleged  combine  and  the 
persons  believed  to  be  concerned  therein ;  and,  ( ft )  the  manner  in 
which  the  alleged  combine  affects  prices  or  restricts  competition, 
and  the  extent  to  which  the  alleged  combine  is  believed  to  operate 
to  the  detriment  of  consumers  or  producers,  as  the  case  may  be.) 

STATEMENT  ACCOMPANYING  APPLICATION  FOR  ORDER. 

Dated  at  -         -  this  -    -  day  of  -      — .  19—. 

The  undersigned  hereby  authorize  —  —  of  (give  name  and  place 
of  residence)  to  act  as  our  representative  for  the  purpose  of 
"  the  combines  investigation  act,"  and  to  receive  communications 
and  conduct  negotiations  on  our  behalf. 

The  names  and  addresses  of  the  persons  applying  for  the  afore- 
said order  are  as  follows: 


Names.  Addresses. 


STATUTORY  DECLARATION  ACCOMPANYING  APPLICATION  FOR  ORDER.1 

CANADA : 

Province  df  -      — ,  to  wit: 

I,  -  — ,  of  the  -  -  of  -  -in  the  -  -  of  -  -  do 
solemnly  declare: 

1.  That  the  alleged  combine  operates  to  my  detriment  as  a  con- 
sumer (or  producer,  as  the  case  may  be). 

2.  That  to  the  best  of  my  knowledge  and  belief  the  combine 
alleged  in  the  foregoing  statement  exists,  and  that  such  combine  is 
injurious  to  trade  (or  has  operated  to  the  detriment  of  consum- 
ers or  producers,  as  the  case  may  be)   in  the  manner  and  to  the 
extent  described. 

3.  That  it  is  in  the  public  interest  that  an  investigation  should 
be  had  into  such  combine. 

And  I  make  this  solemn  declaration  conscientiously  believing 
it  to  be  true,  and  knowing  that  it  is  of  the  same  force  and  effect 
as  if  made  under  oath,  and  by  virtue  of  the  Canada  evidence  act. 

Declared  before  me  at  —  — ,  in  the  county  of  -      — ,  this  — 
day  of  ,  19—. 


i A  declaration  as  above  must  be  made  by  each  applicant. 


CANADA.  375 

[Form  2.] 

ORDER    DIRECTING    INVESTIGATION. 

[The  combines  investigation  act,  sec.  7.] 

In  the  matter  of  the  application  of  (here  insert  the  names  of 
applicants),  dated  the  -  -  day  of  -  — ,  19 — ,  for  an  order 
directing  an  investigation  under  "  the  combines  investigation  act " 
into  an  alleged  combine  (here  state  shortly  the  nature  of  the 
combine). 

I,  the  honorable ,  a  judge  (or  chief  justice,  as  the  case 

may  be)  of  (here  insert  the  name  of  court),  after  having  read  the 

application  of  (names  of  applicants),  dated  the day  of . 

li-)__.  the  statement  and  statutory  declarations  accompanying  the 
same,  and  the  evidence  produced  by  the  said  applicants,  am 
satisfied  that  there  is  reasonable  ground  for  believing  that  a  com- 
bine exists  (here  describe  nature  of  combine),  which  is  injurious 
to  trade  (or  which  has  operated  to  the  detriment  of  consumers  or 
producers,  as  the  case  may  be),  and  that  it  is  in  the  public 
interest  that  an  investigation  should  be  held,  under  the  provisions 
of  the  said  act,  into  the  following  matters,  that  is  to  say:  (Here 
sel  out  the  matters  to  be  investigated.) 

The  names  of  the  persons  alleged  to  be  concerned  in  the  alleged 
combine  are  (here  insert  names  and  addresses),  and  I  am  of 
opinion  that  the  minister  of  labor  should  communicate  with  (here 
insert  the  name  or  names  with,  in  each  case,  the  address),  in 
order  to  obtain  the  recommendation  for  the  appointment  of  a 
person  as  a  member  of  the  board  of  investigation  on  behalf  ot 
those  concerned  in  the  said  alleged  combine. 

Dated  at ,  this day  of ,  19— . 


CAPE  OF  GOOD  HOPE. 

ACT  TO  PREVENT  A  MONOPOLY  OF  THE  MEAT  TRADE 
(No.  15  of  1907). 

Whereas,  it  appears  that  within  recent  years  certain 
persons  have  formed  combinations  for  regulating  the 
meat  trade  in  order  to  secure  larger  profits,  and  whereas 
the  effect  of  such  combinations  is  prejudicial  to  the  pub- 
lic interest^  and  whereas  it  is  desirable  to  provide  by  law 
against  such  combinations. 

Be  it  enacted  by  the  Governor  of  the  Cape  of  Xjood 
Hope,  by  and  with  the  advice  and  consent  of  the  Legis- 
lative Council  and  the  House  of  Assembly  thereof,  as 
follows : — 

1.  In  this  Act  the  following  words  shall,  unless  the  con- 
text otherwise  requires,  bear  the  meanings  set  opposite 
them : — 

"  Butcher  "  shall  mean  any  person  who  is  required 
to  take  out  a  butcher's  licence  under  the  pro- 
visions of  Section  twenty  of  Act  No.  3  of  1864, 
and  Section  five  of  the  amending  Act  No.  43  of 
1898. 

"  Person  "  shall  include  any  partnership  or  company. 

"  Superior  Court "  shall  mean  the  Supreme  Court. 
Eastern  Districts  Court,  High  Court  or  any  Cir- 
cuit Court  within  their  respective  jurisdictions. 

2.  Every  licence  to  carry  on  the  trade  of  a  butcher^  is- 
sued after  the  promulgation  of  this  Act,  shall  bear  en- 
dorsed thereon  the  address  of  the  premises  in  which  the 
trade  is  to  be  carried  on,  and  any  person  who  shall  carry 
on  the  said  trade  in  premises  other  than  those  in  respect 
of  which  the  licence  has  been  issued  shall  be  subject  to 
the  penalties  to  which  any  person  is  liable  who  carried 
on  such  trade  without  a  licence 7  provided,  however,  that 
nothing  in  this  section  contained  shall  be  deemed  to  affect 
the  provisions  of  sections  seven,  eight  and  nine  of  Act  No. 
13  of  1870:  Provided  further  and  notwithstanding  any- 
thing to  the  contrary  in  Act  "No.  20  of  1884,  the  licence 
fee  payable  by  a  butcher  to  sell  South  African  grown 

377 


378  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

meat  only,  shall  be  Five  Pounds  per  annum,  and  the 
licence  fee  payable  by  a  butcher  to  sell  also  other  than 
.  South  African  grown  meat,  or  to  sell  other  than  South 
African  grown  meat  only,  shall  be  Ten  Pounds  per 
annum. 

3.  Every  act,  contract,  combination  or  conspiracy  in 
unreasonable  restraint  of  the  trade  of  a  butcher  is  hereby 
declared  to  be  illegal,  and  every  person  who  shall  commit 
any  such  act  or  make  any  such  contract  or  engage  in  such 
combination  or  conspiracy  shall  be  guilty  of  a  criminal 
offence,  and  subject  on  conviction  to  a  penalty  not  exceed- 
ing £500,  and  in  default  of  payment  thereof  to  imprison- 
ment with  or  without  hard  labour  for  a  period  not  ex- 
ceeding twelve  months :  Povided 

(1)  That  it  shall  not  be  illegal  for  any  person  carry- 

ing on  the  trade  of  a  butcher  to  enter  into  a 
bond  fide  partnership  with  any  other  person 
carrying  on  the  same  trade;  or  to  enter  into 
an}^  bond  fide  arrangement  with  any  other  per- 
son or  persons  carrying  on  the  same  trade?  with 
the  object  of  effecting  economies  in  the  said 
trade  or  carrying  on  business  more  econom- 
ically. 

(2)  That  the  provisions  of  this  section  shall  not  ap- 

ply to  any  contract  which  is  the  mere  accom- 
paniment of  the  sale  of  fixed  property  for  the 
purpose  of  enhancing  the  price  at  which  the 
vendor  sells  the  said  property. 

4.  All  contracts  and  undertakings  in  support  of  any 
combination  the  object  of  wdiich  is  to  secure  the  control 
of  the  sale  of  meat,  so  as  to  enable  such  combination  to 
arbitrarily  control  or  regulate  the  price  thereof,  shall  be 
held  to  be  illegal  and  void. 

5.  Any  person  who  is  engaged  in  the  trade  of  a  butcher 
or  acting  on  behalf  of  a  butcher,  who  shall  compel,  or  at- 
tempt to  compel,  by  threats,  or  intimidation,  verbally  or 
in  writing,  any  butcher  to  sell  meat  at  a  price  or  prices 
other  than  those  at  which  he  is  or  was  selling  at  the  time 
when  such  threats  or  intimidation  were  made,  or  would 
have  sold  but  for  such  threats  or  intimidation,  shall  be 
guilty  of  a  criminal  offence  and  subject  on  conviction  to 
a  penalty  not  exceeding  £100,  and  in  default  of  payment 
thereof  to  imprisonment  with  or  without  hard,  labour  for 
a  period  not  exceeding  six  months. 


CAPE    OF    GOOD   HOPE.  379 

6.  The  licence  to  carry  on  the  trade  of  a  butcher  issued 
to  any  person  who  shall  be  convicted  under  sections  three 
or  five  hereof  shall  be  cancelled  and  no  such  licence  shall 
be  issued  to  him  at  any  time  within  the  period  of  two 
years  from  the  date  of  such  a  conviction. 

7.  Any  contravention  of  the  provisions  of  sections  three 
and  five  of  this  Act  shall  be  prosecuted  in  a  superior 
court. 

8.  The  foregoing  provisions  of  this  Act  or  any  of  them, 
with  the  exception  of  that  part  of  section  two  which  ap- 
plies to  the  licence  fees  payable  by  butchers,  shall  be- 
come operative  only  in  those  Divisions  of  this  Colony  in 
which  it  may  be  proclaimed  to  be  in  force  by  the  Gov- 
ernor upon  an  application  to  that  effect  from  the  Divi- 
sional Council  of  the  Division,  under  a  resolution  adopted 
by  such  Council  at  a  meeting  where  at  least  three- fourths 
of  the  members  are  present,  and  at  least  a  majority  of 
those  present  voted  for  the  resolution:  provided  that  if 
the  Divisional   Councils  of  the   Cape,   Port   Elizabeth, 
East  London  or  Kimberley  decline  to  make  such  appli- 
cation, any  Municipal  Council  within  any  one  of  these 
Divisions  may  make  application  for  the  proclamation  of 
the  provisions  of  this  Act  within  its  own  Municipal  area. 

9.  This  Act  may  be  cited  for  all  purposes  as  the  "  Meat 
Trade  Act.  1907." 


GREAT  BRITAIN. 

GREAT    BRITAIN    COMPANIES    (CONSOLIDATION)    ACT. 

The  interests  of  the  trading  public  in  England,  as 
represented  by  consumers  and  dealers,  have  not  been  the 
subject  of  special  legislation  (except  in  the  ancient  stat- 
utes covering  the  cases  of  badgering,  engrossing,  fore- 
stalling, and  regrating).  Combinations  in  restraint  of 
trade  are  prima  facie  void  and  not  illegal;  no  statute 
in  force  makes  them  criminal,  and  the  policy  of  the  law. 
as  at  present  declared  by  the  legislature,  is  against  all 
fetters  on  combination  and  competition  unaccompanied 
by  violence  or  fraud  or  other  like  injurious  acts. 

The  common  law  and  the  statutes  with  reference  to 
badgering,  forestalling,  regrating,  and  engrossing  de- 
clared that  certain  large  operations  in  goods  which  inter- 
fered with  the  ordinary  course  of  trade  were  injurious  to 
the  public,  and  they  were  held  criminal  accordingly,  but 
the  penal  statutes  were  repealed  by  12  George  III  (c.  71), 
and  the  common  law  was  left  unaided.  By  7  and  8 
Victoria  (c.  24)  the  common  law  in  respect  to  badgering, 
engrossing,  forestalling,  and  regrating  was  expressly  re- 
pealed, with  a  proviso  to  the  effect  that  the  act  should 
not  apply  to  the  offense  of  knowingly  and  fraudulently 
spreading  or  conspiring  to  spread  false  rumors  with  in- 
tent to  affect  the  prices  of  goods  or  merchandise,  nor  to 
the  offense  of  preventing  or  endeavoring  to  prevent,  by 
force  or  threats,  goods  or  merchandise  being  brought  to 
market.1 

On  the  other  hand,  the  interests  of  the  trading  public, 
from  the  standpoint  of  investors  and  creditors,  have  been 
the  subject  of  careful  consideration  and  considerable 
legislation,  and  incidentally  some  of  the  abuses  often 
charged  to  industrial  combinations,  such  as  overcapitali- 
zation and  its  results,  have  in  a  measure  been  corrected 
by  the  publicity  given  to  corporate  affairs. 

The  subject  of  company-law  reform  was  investigated 
in  1894  by  a  departmental  committee  composed  of  mem- 

1  Mogul  S.  S.  Co.  v.  McGregor,  U3  Q.  B.  D.   (1889),  629. 

38L 


382  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

bers  of  Parliament,  judges,  prominent  lawyers,  and  mer- 
chants, who,  after  considering  the  comments  and  sugges- 
tions of  commercial  bodies  throughout  the  country, 
framed  a  bill  which  was  introduced  in  1894.  This  oc- 
cupied the  attention  of  the  House  of  Lords  until  1900. 
when  it  was  finally  passed,  considerably  modified  but 
very  much  on  the  original  lines. 

The  purposes  of  the  legislation  and  the  condition  which 
led  to  its  adoption,  as  shown  by  the  report  of  the  com- 
mittee  in  1895,  the  annual  reports  of  the  board  of  trade, 
and  Parliamentary  debates,  are  briefly  indicated  below. 

It  was  generally  conceded  that  the  vast  majority  of 
corporations  were  honestly  formed  for  the  purpose  of 
engaging  in  legitimate  business,  and  that  the  facilities 
offered  by  the  companies  act  of  1862  (the  first  great  cor- 
poration act)  for  the  formation  of  companies  with 
limited  liability  greatly  extended  British  trade  and  at- 
tracted a  great  amount  of  foreign  capital,  but  it  was 
generally  acknowledged  that  certain  abuses  of  public  con- 
fidence which  did  not  exist  prior  to  this  act,  and  which 
would  have  been  practically  impossible  in  the  case  of 
individuals  or  private  partnerships,  had  developed  to 
such  an  extent  as  to  warrant  the  consideration  of  new 
legislation  with  a  view  to  their  correction. 

The  problem  before  Parliament  was,  on  one  hand,  the 
protection  of  the  large  body  of  the  public  represented  in 
investors  and  creditors,  and,  on  the  other  hand,  to  avoid 
restricting  unduly  the  facilities  for  the  creation  and  de- 
velopment of  corporations,  which  had  contributed  so 
largely  to  the  prosperity  of  the  country,  and  needlessly 
embarrassing  their  administration. 

Instead  of  adopting  arbitrary  rules  which  in  some  cases 
might  effectively  prevent  an  abuse  but  in  others  seriously 
interfere  with  the  prosecution  of  legitimate  business,  it 
was  deemed  sufficient,  for  the  time  being  at  least,  to  pro- 
vide for  a  certain  amount  of  publicity  in  corporate  affairs, 
enforcing  those  requirements  by  penalties,  imposed  in 
many  cases  upon  the  individuals  who  knowingly  and  will- 
fully disregarded  them. 

The  necessity  for  publicity,  and  its  effect,  can  best  be 
shown  by  a  few  typical  cases. 

A  frequent  cause  of  failure  and  the  resulting  loss  to 
stockholders  and  creditors  was  the  so-called  "  loading " 
of  the  purchase  price  of  property  acquired  by  a  new  cor- 
poration. Ah  option  to  purchase  a  business  frequently 


GREAT   BRITAIN.  383 

passed  through  a  number  of  vendors,  the  price  being 
increased  with  each  successive  sale.  It  was  pointed  out 
that  there  was  no  objection  to  this  provided  that  it  was 
done  openly.  If  the  persons  invited  to  subscribe  to  the 
new  company  were  informed  that  they  would  purchase 
the  property  at,  say,  twice  the  amount  the  real  and 
present  owner  was  willing  to  sell  it  for,  and  they  cared  to 
invest  in  such  an  undertaking,  it  was  their  own  affair. 

The  law  now  provides  that  a  prospectus,  which  it  de- 
fines as  an}7  notice,  circular,  advertisement,  or  other  in- 
vitation, offering  to  the  public  for  subscription  or  pur 
chase  an}7  shares  or  debentures  of  a  company,  must  be 
filed  with  the  registrar  of  companies,  and  must  show  (1) 
the  names  and  addresses  of  the  vendors,  and  where  there 
is  more  than  one  separate  vendor,  or  the  company  is  a 
subpurchaser,  the  amount  payable  to  each  vendor;  (2) 
the  particulars  and  the  nature  and  extent  of  the  interest 
of  every  director  in  the  promotion  of,  or  property  to  be 
acquired  by,  the  company;  (3)  the  dates  of  and  parties 
to  every  material  contract,  and  a  reasonable  time  and 
place  for  the  inspection  of  such  contracts;  and  further, 
that  a  company  which  does  not  issue  a  prospectus  shall 
not  allot  any  shares  or  debentures  until  a  statement  in 
lieu  of  a  prospectus  has  been  filed.  A  person  is  deemed 
•i  vendor  who  has  entered  into  any  contract,  absolute  or 
conditional,  for  the  sale  or  purchase,  or  for  any  option  of 
purchase,  of  any  property  to  be  acquired  by  the  company. 

The  purpose  of  the  legislation  is  to  disclose  the  real 
vendor,  the  real  purchase  price,  and  who  is  profiting  by 
the  promotion. 

Another  frequent  cause  of  disaster  in  England,  as 
shown  by  the  reports  of  the  board  of  trade,  was  proceed- 
ing to  allotment  of  shares  with  insufficient  subscriptions, 
often  merely  for  the  purpose  of  paying  the  preliminary 
expenses.  While  it  was  deemed  impracticable  to  fix  n 
proportion  of  the  capital  to  be  subscribed  before  allot- 
ment, owing  to  the  varying  circumstances  of  each  case, 
the  law  provides  that  the  minimum  amount  upon  which 
a  company  offering  shares  to  the  public  may  proceed  to 
issue  stock  must  be  fixed  by  the  memorandum  or  articles 
of  association  and  named  in  the  prospectus,  in  default 
of  which  the  entire  capital  offered  for  subscription  must 
be  taken.  The  subscriber  is  thus  given  an  opportunity  of 
forming  his  own  judgment  as  to  the  immediate  prospects 
of  the  company. 


384  LAWS    ON    TRUSTS   AND   MONOPOLIES. 

Another  serious  cause  of  complaint  sought  to  be  cor- 
rected by  publicity  was  in  connection  with  debentures 
;ind  mortgages.  A  man  owning  a  declining  business 
could  incorporate,  taking  debentures  or  a  mortgage  from 
i  he  company  in  payment  for  his  property,  thus  becoming 
his  own  secured  creditor.  In  case  of  failure,  not  only  the 
creditors  but  the  stockholders  suffered,  because  he  held 
practically  all  the  assets. 

The  inadequacy  of  the  partial  publicity  required  by 
l  he  earlier  acts  was  shown  by  cases  of  intending  credit- 
ors, who,  from  their  examination  of  the  records,  were 
informed  that  there  was  a  large  amount  of  uncalled  cap- 
ital due,  often  from  a  list  of  substantial  stockholders. 
They  were  unaware  of  a  mortgage  on  the  uncalled  cap- 
tal,1  and,  extending  credit  under  such  circumstances,  they 
ussumed  a  risk  they  possibly  would  not  have  considered 
if  they  had  been  fully  informed.  The  law  now  provides 
that  particulars  of  all  mortgages,  debentures,  and  charges 
shall  be  filed  with  the  registrar  of  companies  and  shall 
be  open  to  public  inspection.  While  it  was  fully  realized 
that  legislation  could  not  protect  the  public  from  the  re- 
sults of  their  own  recklessness,  it  was  considered  proper 
that  corporations  should  supply  the  inquiring  investor  or 
creditor  with  information  sufficient  at  least  to  enable  him 
to  form  a  judgment,  and  that  publicity  as  to  financial 
status  was  a  just  and  necessary  condition  to  attach  to  the 
privilege  of  limited  liability.  Again,  the  disclosures  re- 
quired in  many  particulars  are  really  no  more  than  those 
due  from  persons  acting  in  a  fiduciary  capacity,  and 
while  the  underlying  principles  have  long  been  recog- 
nized by  courts  of  law  and  equity,  they  have  frequently 
been  overlooked  by  persons  engaged  in  the  promotion  of 
corporations.  The  application  of  certain  of  these  prin- 
ciples by  the  companies  act  tends  not  only  to  protect  the 
public,  but  to  bring  home  to  promoters  and  directors  a 
sense  of  their  obligations  and  to  shareholders  the  stand- 
ards of  commercial  morality  which  they  have  a  right  to 
expect  from  persons  whom  they  have  been  invited  to 
trust. 

One  important  feature  of  the  act  is  that  certain  con- 
ditions made  possible  by  secrecy  arc  prevented,  and  that 
an  unsatisfactory  financial  condition  of  (lie  company  is 
made  apparent  to  the  creditors  and  stockholders  in  time 


1  Under  the  English   law   the   uncalled  capital   may    he   mortgaged   if  au- 
thorized by  tho  memorandum  and  articles. 


GEE  AT  BRITAIN.  385 

for  them  to  take  such  action  as  seems  necessary  before  the 
assets  are  further  diminished. 

It  was  pointed  out  in  Parliament  that  the  existing 
methods  of  redress  by  means  of  criminal  actions  were 
unsatisfactory  because  of  the  great  indisposition  to  resort 
to  criminal  procedure  and  the  tendency  of  juries  to  acquit 
for  doing  wliat  was  only  a  common  practice.  In  addition 
it  was  necessary  to  be  reasonably  certain  that  there  was 
sufficient  evidence,  and  in  some  cases  it  was  extremely 
difficult  to  secure  it,  while  there  might  be  little  doubt  that 
gross  frauds  had  been  committed.  Civil  actions  were  at- 
tended with  considerable  difficulty  and  heavy  expense. 

It  is  apparent  from  the  foregoing  that  in  order  to  give 
effect  to  certain  provisions  of  the  companies  acts  an  ad- 
ministrative office  was  required.  The  duties  were  im- 
posed upon  the  board  of  trade,  and  some  of  the  most 
important  will  be  noted  hereafter. 

A  digest  of  the  provisions  of  the  act  of  1908  in  respect 
of  (1)  the  classification  of  companies,  (2)  the  powers 
and  duties  of  the  board  of  trade  in  connection  with  the 
administration  of  the  act.  accompanied  by  extracts  from 
the  annual  reports  of  the  board,  (3)  information  avail- 
able to  the  public,  (4)  the  penalties  for  the  enforcement 
of  the  act,  and  an  outline  of  the  history  and  organization 
of  the  board  of  trade  are  appended  hereto. 

CLASSIFICATION  OF  COMPANIES. 

The  English  law  has  classified  companies  (1)  in  re- 
spect of  the  liability  of  members,  (2)  in  respect  of  their 
organization  and  relation  to  the  public. 

IN    RESPECT   OF   LIABILITY   OF    MEMBERS. 

(a)  Companies  "  limited  by  shares,"  defined  as  com- 
panies having  the  liability  of  their  members  limited  by 
the  memorandum  to  the  amount,  if  any,  unpaid  on  the 
shares  respectively  held  by  them. 

(b)  Companies  "limited  by  guarantee,"  the  liabilities 
of  the  members  being  limited  by  the  memorandum  of 
association  to  such  amount  as  the  members  may  respec- 
tively undertake  to  contribute  to  the  assets  of  the  com- 
pany in  the  event  of  its  being  wound  up. 

(c)  "  Unlimited  companies,"  the  members  of  which 
have  no  limit  to  their  liability.     There  are  comparatively 
few  companies  of  this  class. 

16491—13 25 


386  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

Unless  otherwise  noted,  the  provisions  of  the  act  here- 
after referred  to  relate  generally  to  companies  "  limited 
by  shares." 

IN   RESPECT   OF   ORGANIZATION    AND   RELATION   TO   THE  PUBLIC. 

(a)  "Private  companies,"  which  are  defined  as  those 
which   by   their   articles   restrict   the   right   to   transfer 
shares,  limit  their  membership  to  not  more  than  50  (ex- 
clusive of  persons  employed  by  the  company),  and  pro- 
hibit any  invitation  to  the  public  to  subscribe  for  any 
shares  or  debentures. 

(b)  "Public  companies,"  which  include  all  other  than 
private,  and  which  are  chiefly  considered  hereafter. 

The  most  important  distinctions  between  public  and 
private  companies  are  as  follows: 

(a)  A  private  company  may  be  formed  by  two  persons, 
while  a  public  company  requires  seven. 

(b)  The  preliminary  requirements  are  fewer  in  the  case 
of  private  companies.     The  certificate  of  incorporation 
is  granted  upon  the  delivery  to  the  registrar  of  companies 
of  the  memorandum  and  articles  of  association,  whereas 
other  companies  can  not  commence  business  without  com- 
pliance with  a  series  of  preliminary  conditions,  including 
the  registration  of  a  prospectus  or  a  statement  in  lieu 
thereof. 

(c)  An  annual  audited  balance  sheet,  summarizing  the 
capital,  liabilities,  and  assets  of  the  company,  is  required 
from  a  public  company,  but  not  from  a  private  company.1 

(d)  Private  companies  are  not  required  to  file  with  the 
registrar  a  copy  of  a  detailed  report  as  to  the  position  of 
the  company  which  is  sent  to  members  before  its  first  or 
"  statutory  "  meeting.2 

(e)  Private  companies  are  exempt  from  the  provisions 
of  the  act  permitting  the  inspection  of  balance  sheets, 
auditor's  and  other  reports  by  holders  of  debentures  and 
preference  shares.3 

POWERS  AND  DUTIES  OF  THE  BOARD  OF  TRADE  IN  RESPECT  TO 
THE  ADMINISTRATION  OF  THE  COMPANIES  (CONSOLIDA- 
TION) ACT  1908. 

While  most  of  the  duties  imposed  upon  the  board  of 
trade  by  this  act  are  in  connection  with  the  dissolution  of 

1  Companies  (consolidation)  act,  1908,  sec.  26. 

2  Companies  (consolidation)  act,  1908,  sec.  65. 

8  Companies  (consolidation)  act,  1908,  sec.  114. 


GREAT   BRITAIN.  387 

companies,  there  are  some  powers  which  may  be  exercised 
under  certain  circumstances  over  going  concerns. 

Inspection. — Perhaps  the  most  important,  at  least  in 
theory,  is  that  of  inspection  of  the  affairs  of  a  company 
at  the  request  of  its  stockholders.1  This  power  of  inspec- 
tion, however,  has  been  very  rarely  used.2  The  inspec- 
tors appointed  by  the  board  have  access  to  all  the  books 
and  documents  of  the  company  and  may  examine  its 
officers  and  agents  under  oath,  rendering,  finally,  a  report 
to  the  board  of  trade.  Copies  of  this  report  are,  upon 
request,  furnished  to  the  applicants  for  the  examination, 
and,  when  properly  authenticated,  are  admissible  in  any 
legal  proceeding  as  evidence  of  the  opinion  of  the  in- 
spectors in  relation  to  any  matters  therein  contained. 

Abuse  of  this  privilege  is  prevented  by  a  provision  that 
the  application  shall  be  by  persons  holding  not  less  than 
one-tenth  of  the  shares  issued,  and  by  a  requirement  of 
the  board  of  trade  that  the  application  shall  be  supported 
by  evidence  of  the  good  faith  of  the  applicants,  and  that 
they  have  good  reason  for  demanding  the  investigation. 
The  board  may,  in  addition,  require  the  applicants  to 
secure  the  costs  of  the  investigation,  which  must  be  de- 
frayed by  them  unless,  in  the  discretion  of  the  board, 
they  should  be  borne  by  the  company. 

Audit. — Upon  the  application  of  any  stockholder  the 
board  of  trade  may  appoint  auditors  for  any  company 
upon  its  failure  to  do  so  at  its  annual  meeting.3 

The  regular  audit  of  accounts,  though  usually  pro- 
vided for  in  the  articles  of  a  company,  was  considered  by 
Parliament  to  be  too  important  to  stockholders  and  the 
public  to  be  left  to  a  voluntary  arrangement.  The  ap- 
pointment of  auditors  by  the  board  of  trade,  upon  the 
application  of  a  stockholder,  is  provided  for  extending 
the  principle  adopted  in  regard  to  banking  companies  in 
the  companies  act  1879.4  The  auditors  have  access  to  all 
books  and  are  required  to  report  to  the  stockholders,  on 
the  accounts  examined  by  them,  which  report  shall  state 
whether  they  have  obtained  all  information  and  explana- 
tions required  by  them,  and  whether  in  their  opinion  the 
balance  sheets  submitted  in  general  meeting  exhibit  a 
correct  view  of  the  company's  affairs. 

1  Companies   (consolidation)   act,  1908,  sec.  109. 

2  Palmer's  Company  Law  (7th  ed.),  p.  220. 

3  Companies   (consolidation)   act,  1908,  sees.  112-113. 

4  Palmer's  Company  Law  (7th  ed.),  p.  221. 


388  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

•  Payment  of  interest  out  of  capital. — Where  any  shares 
are  issued  to  raise  money  for  the  construction  of  any 
works,  buildings,  or  plant  which  can  not  be  made  profit- 
able for  a  lengthened  period,  the  company  may  pay  inter- 
est on  so  much  of  that  share  capital  as  is  for  the  time 
being  paid  up,  provided  that  it  is  authorized  by  the 
articles  or  special  resolution,  and,  further,  that  it  is 
sanctioned  by  the  board  of  trade,  which  may  investigate 
the  circumstances  at  the  expense  of  the  company  and  the 
payments  may  continue  only  for  such  portion  of  the  time 
limited  by  the  act  as  the  board  may  determine,  but  in  no 
case  shall  the  rate  of  interest  exceed  4  per  cent  per 
annum  or  such  lower  rate  as  may  be  prescribed  by  order 
in  council.1 

Articles  of  association. — The  act  requires  the  articles 
of  association  to  be  registered,  and  provides  that  in  the 
absence  of  articles  adopted  by  the  company,  or  in  so  far 
as  filed  articles  do  not  exclude  or  modify  model  articles 
appended  to  the  act,  such  model  articles  shall  constitute 
the  articles  of  the  company.2 

The  board  of  trade  may  alter  or  add  to  these  statutory 
articles,  which  alterations  or  additions  will  thereafter 
have  the  force  of  law ;  the  changes,  however,  not  affecting 
companies  previously  registered.3 

Change  of  name. — A  company  may,  by  special  resolu- 
tion, change  its  name,  but  only  with  the  consent  of  the 
board  of  trade.4 

The  board  has  authority  to  establish  registration  offices, 
make  regulations  as  to  the  performance  of  the  duties  of 
the  registrar,  and  to  prescribe  fees  for  the  inspection  or 
copies  of  the  records  of  the  registrar,  not  exceeding  the 
maximum  prescribed  by  the  act.5 

Other  duties  in  connection  with  going  concerns,  but 
more  ministerial  in  character,  such  as  issuing  certificates 
of  incorporation,  the  registration  of  such  documents  as 
the  act  requires  to  be  published,  etc.,  have  been  imposed 
upon  the  board. 

WINDING  UP  AND  BEMOVAL  FROM   BEGISTEB. 

A  company  once  incorporated  can  not  be  dissolved 
except  by  compliance  with  the  provisions  of  the  act,  or 
by  removal  from  the  register  as  a  defunct  company. 

1  Companies   (consolidation)   act.  1908,  sec.  91. 

2  Companies  (consolidation)' act,  1908,  sees.  10  and  11. 
8  Companies  (consolidation)  act,  1908,  sec  118. 

*  Companies  (consolidation)   act,  1908,  sec.  8   (3). 

5  Companies  (consolidation)  act,  1908,  sec.  243  (1),  (2). 


GBEAT  BEITAIN.  389 

The  grounds  on  which  a  winding-up  order  may  be  made 
by  the  court  are: 

(a)  If  the  company  has  by  special  resolution  resolved 
that  the  company  be  wound  up  by  the  court ; 

(b)  If  default  is  made  in  filing  the  statutory  report  or 
in  holding  the  statutory  meeting; 

(c)  If  the  company  does  not  commence  its  business  for 
a  whole  year; 

(d)  If  the  number  of  members  is  reduced,  in  the  case  of 
a  private  company,  below  two.  or,  in  the  case  of  any 
other  company,  below  seven; 

(e)  If  the  company  is  unable  to  pay  its  debts; 

(/)  If  the  court  is  of  the  opinion  that  it  is  just  and 
equitable  that  the  company  should  be  wound  up.1 

Just  what  "  Just  and  equitable  "  means  is,  of  course, 
impossible  to  define,  but  winding-up  orders  have  been 
made  on  the  ground  that  the  substratum  of  the  company 
was  gone,2  that  the  company  was  a  bubble,3  and  that  the 
company  was  conceived  and  brought  forth  in  fraud.4 

The  winding-up  order  once  having  been  issued  by  the 
court,  however,  the  board  of  trade  is  charged  with  many 
important  duties. 

When  it  became  necessary  to  appoint  a  receiver,  the 
official  receiver  attached  to  the  court  for  banpruptcy 
purposes  shall  be  appointed,  or,  if  there  is  more  than  one-, 
such  one  of  them  as  the  board  of  trade  may  select,  and  in 
the  absence  of  any  official  receiver  the  board  may  ap- 
point an  officer  for  the  purpose.5 

A  receiver  thus  appointed  shall  submit  a  preliminary 
report  to  the  court,  stating  the  amount  of  capital  issued, 
subscribed,  and  paid  up;  the  estimated  amount  of  assets 
and  liabilities ;  the  causes  of  failure ;  his  opinion  whether 
further  investigation  in  regard  to  the  promotion,  forma- 
tion, or  failure  of  the  company  or  the  conduct  of  the  busi- 
ness is  desirable,  and  may  report  further  whether  in  his 
opinion  any  fraud  has  been  committed  and  mention  any 
other  matters  desirable  to  be  brought  to  the  attention  of 
the  court.6 

1  Companies  (consolidation)  act,  1908,  sec.  129. 

2  German  Date  Coffee  Co.,  20  C.  D.,  169  ;  Red  Rock  Gold  Mining  Co.,  61 
L.   T.,    785. 

3  London  &  County  Coal  Co.,  3  Eq.,  355. 

*  J.  E.  Brinsmead  &  Sons  (1S97),  1  Ch.  45,  1  ch.  406  (Appeal). 
6  Companies  (consolidation)  act,  1908,  sec.  146. 
«  Companies  (consolidation)  act,  1908,  sec.  148. 


390 


LAWS    ON    TRUSTS    AND    MONOPOLIES. 


If  the  receiver  further  reports  that  in  his  opinion  fraud 
has  been  committed  in  the  promotion  of  the  company,  or 
by  any  director  or  officer  since  its  formation,  the  court 
may  publicly  examine  such  person  or  persons  on  oath, 
and  the  receiver  and  liquidator  (if  any)  may  take  part 
in  such  examination.  Notes  of  the  examination  shall 
be  reduced  to  writing,  signed  by  the  person  examined, 
and  may  be  used  in  evidence  against  him,  and  shall  be 
open  to  the  inspection  of  any  creditor  or  contributory.1 

The  public  examination  provided  for  in  this  section 
was  introduced  into  the  company  laws  as  section  8  of  the 
director's  liability  act,  1890,  and  was  at  first  largely  re- 
sorted to,  but  its  operation  was  considerably  curtailed  by 
a  decision  of  the  House  of  Lords  in  1896,  holding  that  no 
order  for  public  examination  of  a  particular  person  can 
be  made  unless  the  official  receiver  expresses  the  opinion 
that  such  person  has  been  guilty  of  fraud  and  shows  how 
he  is  connected  with  the  facts.2 

The  provision  has,  notwithstanding  this  limitation, 
been  availed  of  in  a  number  of  cases,  as  shown  by  the  fol- 


lowing table: 


Public  examinations. 


Year. 

Wind  in  £- 
up  orders. 

Number  of 
companies 
in  which 
examina- 
tion 
ordered. 

N'  umber  of 
persons 
examined. 

1902                                                                     

112 

10 

15 

1903                               

83 

16 

50 

1904  

9S 

25 

1905                                                           

SO 

11 

33 

1906       

lie, 

s 

16 

1907                                                              

10X 

10 

24 

1908              

126 

9 

28 

inoq                                                            

146 

9 

18 

1910                                 

139 

c, 

i  11 

1  Reports,  Board  of  Trade,  1902-1910. 

Where,  in  the  course  of  winding  up  a  company,  it  ap- 
pears that  any  person  taking  part  in  the  formation  or 
promotion  of  the  company,  or  any  past  or  present  direc- 
tor, manager,  liquidator,  or  officer  has  misapplied  any 
funds,  or  has  been  guilty  of  breach  of  trust,  the  court 
may,  upon  the  application  of  the  official  receiver,  liquida- 
tor, or  any  creditor  or  contributory,  examine  into  the 
conduct  of  the  person  complained  of  and  compel  him  to 

1  Companies    (consolidation)    act,  1008.  sec.  17.~i. 

2  Ex  parte  Barnes   (190G).  A.  C.   146.     Civil,  Naval,   and  Military  Out- 
fitters   (1899),   1  Ch.   215. 


GKEAT  BRITAIN.  391 

restore  any  such  money  or  property  to  the  company,  and 
the  order  shall  be  deemed  a  final  judgment.1 

The  receiver  shall  call  separate  meetings  of  creditors 
and  contributories  to  determine  whether  an  application 
shall  be  made  to  the  court  for  appointing  a  liquidator 
in  the  place  of  the  official  receiver  and  determining 
whether  application  is  to  be  made  for  the  appointment  of 
a  committee  of  inspection  consisting  of  creditors  and 
contributories  to  act  with  the  liquidator.2 

Where  the  official  receiver  becomes  the  liquidator  of  a 
company  he  may,  in  his  discretion,  apply  to  the  court 
for  the  appointment  of  a  special  manager  with  such  pow- 
ers and  for  such  time  as  the  court  may  direct,  and  the 
special  manager  so  appointed  shall  give  such  security 
and  account  in  such  manner  as  the  board  may  direct.3 

An  account  called  the  "  Companies  liquidation  ac- 
count "  shall  be  kept  by  the  board  of  trade  with  the  Bank 
of  England,  and  all  moneys  received  by  the  board  in  re- 
spect of  proceedings  under  this  act  in  connection  with 
the  winding  up  of  companies  in  England  shall  be  paid 
to  that  account.4 

Whenever  the  balance  of  this  general  account  is  in 
excess  of  the  immediate  requirements  of  the  board,  it 
may  be  invested  in  Government  securities,  and  the  divi- 
dends shall  be  considered  in  fixing  fees  payable  in  wind- 
ing-up  proceedings.5 

When  the  committee  of  inspection  deems  the  balance 
to  the  credit  of  the  company  to  be  in  excess  of  immediate 
requirements,  the  board  shall  invest  the  excess  in  Govern- 
ment securities  and  credit  the  dividends  to  the  company.6 

When  the  balance  to  the  credit  of  any  company's  ac- 
count with  the  board  of  trade  exceeds  £2,000,  and  the 
liquidator  notifies  the  board  that  tl\e  excess  is  not  re- 
quired, the  company  shall  be  entitled  to  2  per  cent  inter- 
est on  the  excess.6 

Every  liquidator  shall,  at  least  twice  a  year,  render  to 
the  board  of  trade  an  account  of  his  receipts  and  pay- 
ments, which  shall  be  audited  by  the  board,  summarized, 
and  sent  to  creditors  and  contributors,  a  copy  being  re- 

1  Companies  (consolidation)  act,  1008,  sec.  215. 

2  Companies   (consolidation)  act,  1908,  sees.  152,  160. 

3  Companies   (consolidation)  act,  1908,  soc.  161. 

4  Companies   (consolidation)  act,  1908,  sec.  229. 

5  Companies   (consolidation)  act,  1908,  sec.  2MO. 
a  Companies   (consolidation)  act,  1908,  sec.  231. 


392  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

tained  by  the  board  for  the  inspection  of  any  person 
interested.1 

The  board  may  direct  a  local  investigation  into  the 
books  and  vouchers  of  the  liquidator,  and  may,  in  its 
discretion,  apply  to  the  court  to  examine  him  or  any  other 
person  on  oath  concerning  the  wind-up  of  any  company.2 

The  board  shall  take  cognizance  of  the  conduct  of  liqui- 
dators of  companies  being  wound  up  by  the  court,  and, 
if  they  do  not  observe  the  requirements  imposed  upon 
them  by  the  statute  or  rules,  or  a  complaint  is  made  by 
any  creditor  or  contributory,  the  board  shall  inquire  into 
the  matter  and  take  such  action  as  it  may  think  expe- 
dient.2 

Upon  the  conclusion  of  his  duties  the  liquidator  shall 
report  to  the  board  of  trade,  and  after  consideration  of 
the  report  and  any  objection  urged  against  his  release  by 
a  creditor  or  contributory  the  board  shall  grant  or  with- 
hold his  release  accordingly,  subject  to  an  appeal  to  the 
high  court.3 

An  order  of  the  board  of  trade  releasing  the  liquidator 
shall  discharge  him  from  all  liability,  but  may  be  re- 
voked on  proof  that  it  was  obtained  by  fraud  or  by  sup- 
pression of  any  material  fact.4 

In  the  absence  of  a  committee  of  inspection  appointed 
to  act  with  the  liquidator,  the  board  of  trade  may  do  any 
act  that  the  committee  might  do  under  the  act.  Under 
the  rules  of  the  board  of  trade  the  committee  of  inspec- 
tion, consisting  of  creditors  and  contributories,  assists 
the  liquidator  in  the  administration  of  the  assets  of  the 
company. 

The  board  of  trade  may,  with  the  approval  of  the  treas- 
ury, appoint  such  additional  officers  as  may  be  required 
for  winding  up  companies,  and  may  remove  any  person 
so  appointed.5 

An  inspector  general  in  companies  liquidation  was  ap- 
pointed in  1891,  to  whom  the  official  receivers  of  the 
board  of  trade  throughout  the  country  report  in  connec- 
tion with  matters  arising  under  the  companies  act.6 

1  Companies   (consolidation)   act,  1908,  sec.  155. 

2  Companies  (consolidation)   act,  1908,  sec.  159. 

3  Companies   (consolation  i   act,  1908,  sec.  157. 

4  Companies   (consolidation)   act,  1908,  sees.   152,  160;   Statutory  Rules 
and  Orders,  1909,  p.  95. 

B  Companies  (consolidation)  act,  1908,  sec.  233. 
0  Statutory  Rales  and  Orders,  1891. 


GREAT  BRITAIN.  393 

The  officers  of  the  courts  winding  up  companies  shall 
report  to  the  board  of  trade  at  such  times  and  in  such 
manner  as  may  be  required,  and  from  those  returns  the 
board  shall  prepare  books  which  shall  be  open  for  public 
information  under  the  regulations  of  the  board.1 

The  lord  chancellor  may,  with  the  concurrence  of  the 
president  of  the  board  of  trade,  make  general  rules  for 
carrying  into  effect  the  objects  of  this  act  so  far  as  it 
relates  to  the  winding  up  of  companies  in  England.2 

Such  rules  shall  be  laid  before  Parliament  and  shall 
be  judicially  noticed  and  shall  have  the  force  of  law.2 
(Rules  made  under  this  authority  may  be  found  in  Stat- 
utory Rules  and  Orders,  1909,  pp.  61-203.) 

The  accounts  of  the  board  of  trade  in  relation  to  the 
winding  up  of  companies  in  England  shall  be  audited 
ir-  such  manner  as  the  treasury  may  direct,  and  the  board 
shall  make  such  returns  as  the  treasury  direct 3  for  the 
purposes  of  the  account  to  be  laid  before  Parliament. 

Defunct  companies. — Where  the  registrar  of  companies 
has  reasonable  cause  to  believe  that  a  company  is  not 
carrying  on  business,  he  shall  send  an  inquiry  by  mail  to 
its  registered  office,  and  in  default  of  an  answer  in  one 
month  shall  in  14  days  after  the  expiration  of  the  month 
send  a  second,  after  which  in  default  of  an  answer  for 
one  month  a  notice  will  be  published  in  the  Gazette  that 
unless  cause  is  shown  to  the  contrary  within  three  months 
the  company  shall  be  removed  from  the  register  and  dis- 
solved. 

The  registrar  may,  under  similar  conditions,  remove  a 
company  from  the  register  when  he  has  reasonable  cause 
to  believe  either  that  no  liquidator  is  acting  or  that  the 
affairs  of  the  company  are  fully  wound  up  and  the  re- 
turns required  to  be  made  by  him  have  not  been  made  for 
six  months  after  a  demand  for  them  has  been  made. 

The  court  may  restore  any  company  to  the  register  if. 
on  the  application  of  the  company,  or  any  member  or 
creditor,  it  is  satisfied  that  the  company  was  carrying  on 
business,  or  otherwise  that  it  is  just  that  the  company  be 
restored  to  the  register  upon  such  conditions  as  the  court 
may  deem  fit,  and  the  company  shall  be  deemed  to  have 
continued  in  existence  as  if  its  name  had  not  been 
struck  off.* 

1  Companies  (consolidation)  act,  1908,  sec.  235. 

2  Companies  (consolidation)  act,  1908,  sec.  237. 

3  Companies  (consolidation)  act,  1908,  sec.  234. 
*  Companies  (consolidation)  act,  1908,  sec.  242. 


394  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

The  board  of  trade  shall  cause  an  annual  report  of  the 
matters  within  this  act  to  be  prepared  and  laid  before 
both  Houses  of  Parliament.1 

REPORTS  OF  THE  BOARD  OF  TRADE. 

The  publicity  afforded  by  the  law  has  taken  two  forms, 
the  annual  reports  of  the  board  of  trade,  submitted  to 
Parliament  in  accordance  with  the  act,  and  the  informa- 
tion required  to  be  filed  and  open  to  the  inspection  of  the 
public. 

With  the  information  available  at  the  office  of  the 
registrar  of  companies,  and  from  the  reports  of  the  offi- 
cial receiver  on  companies  wound  up,  the  board  of  trade 
has  been  able  to  report  upon  improper  methods  of  pro- 
motion or  management  and  common  causes  of  failure 
during  the  previous  year.  While  thus  enabled  to  observe 
the  deficiencies  of  the  law,  it  has,  by  means  of  the  same 
information,  been  possible  to  report  upon  the  effect  of 
each  amendment.  The  reports  also  contain  typical  cases 
illustrating  various  causes  of  failure,  often  accompanied 
with  frank  comment  upon  the  methods  employed  by  the 
promoters  or  officers,  and  the  board  has  repeatedly  called 
the  attention  of  the  public  to  the  provisions  of  the  law 
intended  for  their  protection. 

In  addition  to  the  above,  each  report  contains  detailed 
statistics  in  respect  of  companies  registered  or  wound  up 
during  the  preceding  year. 

The  following  extracts  taken  from  the  first  annual 
report  of  the  board  of  trade  (1891)  illustrate  the  char- 
acter of  these  reports : 

But  perhaps  the  most  frequent  of  all  the  abuses  arising  in  con- 
nection with  the  formation  of  companies  lies  in  the  exercise  of 
the  power  by  which  the  directors  proceed  to  allotment  on  a 
purely  nominal  share  subscription.  Forgetful  of  this  fact  innu- 
merable cases  have  occurred  where  persons  have  been  induced  to 
subscribe  for  shares  in  a  company  believing  that  it  would  start 
possessed  of  ample  means  with  which  to  carry  out  the  objects  for 
which  it  was  formed,  and  where  they  subsequently  found  that  by 
the  act  of  allotment  upon  a  merely  nominal  subscription  the 
directors  had  compelled  them  to  become  partners  in  a  company 
which  was  doomed ^to  failure  by  the  total  inadequacy  of  its 
resources.  This  evil"  is  aggravated  by  the  fact  that  the  directors 
are  in  the  majority  of  cases  the  nominees  of  the  promoters,  and 
that  it  is,  as  a  rule,  [to]  the  interest  of  the  latter  that  an  allot- 
ment should  be  made. 

i  Companies  (consolidation)  act,  1908,  sec.  283. 


GREAT   BRITAIN.  395 

In  regard  to  some  of  these  matters,  the  evils  referred  to  may,  to 
some  extent,  be  capable  to  mitigation  by  legislation,  but  it  will 
probably  be  found  impossible  to  guard  against  all  the  ever-chang- 
ing and  endless  devices  of  unscrupulous  promoters,  and  the  most 
effective  remedy  will  probably  be  found  in  the  exercise  of  greater 
caution  and  discrimination  on  the  part  of  the  investing  public. 
***** 

Again,  some  of  the  companies  were  formed  merely  for  the  pur- 
pose of  carrying  out  an  idea,  not  accompanied  by  the  acquisition 
of  any  property  or  rights — sometimes  an  idea  involving  great 
benefit  to  the  community,  if  it  could  be  properly  carried  out.  The 
failure  of  such  companies  is  not  to  be  taken  as  showing  that  the 
idea  in  itself  was  erroneous,  but  merely  that  the  means  adopted 
were  unsuitable  or  insufficient.  In  all  these  cases,  the  amount  of 
capital  subscribed  by  the  public  was  wholly  inadequate  for  the 
purposes  of  the  company,  as  judged  even  by  the  estimate  of  its 
promoters  on  its  formation.  The  fact  is,  the  directors  should 
never  have  gone  to  allotment;  and  in  doing  so  they  entirely  neg- 
lected and  sacrificed  the  interests  of  the  subscribers.  In  many 
cases  what  they  did  was  simply  to  seize  the  moneys  of  a  mere 
handful  of  subscribers,  and  to  use  them  in  paying  the  expenses 
of  promotion  and  the  other  preliminary  expenses  of  the  company. 

In  discussing  the  failures  of  the  past  year  in  its  eight- 
eenth annual  report,  the  board  of  trade  (1908)  cited  the 
following  case: 

Brazilian  Rubber  Plantations  &  Estates  (Ltd.)  (High  Court). 
This  company  was  formed  on  the  31st  of  January,  1906,  with  a 
nominal  capital  of  £180,000,  for  the  purpose  of  acquiring  and  de- 
veloping rubber  estates  in  Brazil. 

A  few  months  prior  to  the  formation  of  the  company  the  original 
vendor  of  these  estates  sold  them  for  £15,000.  The  purchaser  in 
his  turn  sold  them  in  October.  1905,  to  the  promoters  for  £20,000. 
In  January.  1906,  the  promoters  formed  a  syndicate  to  acquire  the 
property  for  £50,000,  and  through  the  medium  of  the  syndicate 
promoted  the  company  and  sold  the  property  to  it  for  £150,000  on 
tho  31st  of  January,  1906.  This  was  a  grossly  inflated  figure,  no 
change  having  taken  place  in  the  property  since  the  previous  Octo- 
ber, when  it  was  sold  by  the  original  vendor  for  £15.000. 

The  company's  prospectus,  which  was  issued  on  the  1st  of  Feb- 
ruary, 1906.  the  day  after  the  registration  of  the  company,  con- 
tained various  misstatements,  which  are  set  out  in  the  official 
receiver's  report,  and  among  them  the  official  receiver  refers  to 
the  following  paragraphs: 

"  The  area  of  the  estates,  which  are  freehold  and  unencumbered, 
is  approximately  12,500  acres. 

"The  distance  from  the  estates  to  the  railway  is  about  12  miles 
on  an  easy  gradient." 

These  two  statements  are  said  by  the  directors  to  be  based 
partly  on  a  letter  to  the  effect  that  mules  carried  the  produce  to 
the  railway,  about  12  miles  distant.  The  word  "  mules  "  in  the 
letter,  the  directors  state,  was  misread  "  miles,"  and,  20  miles 
being  taken  to  mean  20  square  miles,  they  considered  that  they 


396  LAWS   ON   TKTJSTS  AND  MONOPOLIES. 

were  moderate  when  they  set  dawn  the  20  square  miles  in  the  pros- 
pectus as  containing  only  12,500  English  acres. 

The  official  receiver  reported  to  the  court  that  in  his  opinion 
fraud  had  been  committed  by  the  promoters  and  by  some  of  the 
directors,  and  a  public  examination  has  been  held  by  the  court  of 
the  persons  reported  against  by  the  official  receiver. 

The  nineteenth  annual  report  (1909)  contains  the 
following : 

*  *  *  *  * 

Another  instance  of  the  way  in  which  persons  disregard  in- 
formation which  is  made  available  by  law  for  their  protec- 
tion is  afforded  by  the  case  of  The  Bee  &  the  Bells  Refresh- 
ment Contracting  Syndicate  (Ltd.),  (Leeds).  This  company 
was  registered  in  October,  1909,  with  a  nominal  capital  of  £5,000 
in  fl  shares,  as  a  private  company.  The  object  of  forming  the 
company  was  to  enable  the  promoter  (who  was  a  refreshment 
caterer  and  who  had  obtained  the  exclusive  right  to  supply  re- 
freshments on  the  aviation  grounds  at  Blackpool  during  the  flying 
week)  to  carry  the  business  through  without  personal  liability. 
Though  the  nominal  capital  was  £5,000,  the  capital  subscribed  for 
cash  was  £2  only,  and  this  fact  was  open  to  any  inquirer  at  Som- 
erset House.  With  this  capital  of  £2  only  at  his  back,  the  com- 
pany managed  to  incur  liabilities  to  the  extent  of  £1,551,  and  the 
official  receiver  estimates  that  the  net  loss  to  creditors  will  amount 
to  19s.  in  the  pound. 

The  following  extract  is  from  the  annual  report  for  the 
year  1910 : 

Insurance  companies. — There  have  been  several  important  fail- 
ures during  the  past  year  of  companies  carrying  on  various  forms 
of  insurance  business.  Of  these  failures  that  of  the  Law  Car  & 
General  Insurance  Corporation  (Ltd.),  is,  so  far  as  figures  are 
concerned,  the  most  important,  but  the  National  Free  Homes 
Association  (Ltd.)  is  a  very  bad  example  of  the  companies  which 
cater  for  poor  people  and  induce  them  to  part  with  their  saving's. 
This  latter  company  received  upward  of  £17,000  in  small  sums 
from  poor  people,  and  practically  the  whole  of  this  sum  was  ab- 
sorbed by  the  directors  and  officials  in  the  payment  of  their  own 
salaries. 

INFORMATION    AVAILABLE    TO    THE    PUBLIC. 

The  following  information  is  open  to  the  inspection  of 
the  public  at  the  office  of  the  registrar  of  companies,  with 
the  exception  of  one  or  two  items,  where,  as  indicated, 
the  document  is  for  the  inspection  of  members  or  con- 
tributories  only.  *. 

As  an  indication  of  the  actual  use  of  this  information 
by  the  public,  the  registrar  of  companies  reported  in 
1895  that  over  100  persons  searched  the  files  daily. 

1.  The  memorandum  of  association,  which  must  state : 


GEE  AT  BRITAIN.  397 

(a)  The  name  of  the  company,  with  "  limited  "  as  the 
last  word  of  the  name. 

(&)   Location  of  registered  office. 

(c)  Objects  of  company. 

(d)  That  the  liability  of  its  members  is  limited. 

(e)  The  amount  of  capital  and  number  of  shares. 

(/)  The  names  of  each  subscriber  and  amount  of  stock 
subscribed  for.1 

2.  Any  change  of  name  by  company.2 

3.  Any  alterations  in  memorandum  of  association.3 

4.  Articles  of  association  provided  by  the   company 
(if  any),  or  those  provided  by  the  act  of  1908.4 

5.  A  list  of  members  of  the  company,  a  list  of  all  persons 
who  have  ceased  to  be  members,  their  names,  addresses, 
and  occupations,  the  number  of  shares  held  by  each,  and 
the  date  of  all  transfers  of  stock.5 

NOTE. — These  requirements  as  to  the  publicity  of  lists  of  mem- 
bers of  companies  and  their  holdings  are  in  marked  contrast  with 
those  existing  in  the  United  States.  The  laws  of  50  States  and 
Territories  in  respect  of  the  accessibility  of  this  information  may 
be  classified  as  follows: 

Open  to  the  public,  6;  two  of  these  fail  to  provide  a  penalty 
for  noncompliance.  Open  to  persons  "  interested,"  2 ;  one  of  these 
fails  to  provide  a  penalty  for  noncompliance.  Open  to  stockhold- 
ers and  creditors,  14;  three  of  these  fail  to  provide  a  penalty 
for  noncompliance.  Open  to  stockholders  only,  21 ;  three  of  these 
fail  to  provide  a  penalty  for  noncompliance.  Open  to  creditors 
only,  1.  'List  required  to  be  kept,  but  no  provision  for  access,  4. 
No  provision  relating  to  this  subject,  2.  Total,  50.  (Corporation 
Manual,  1910.) 

6.  A  summary  distinguishing  between   shares  issued 
for  cash  and  shares  issued  as  fully  or  partly  paid  up  oth- 
erwise than  in  cash,  specifying — 

(a)  The  share  capital,  and  the  number  of  shares. 

(b)  The  number  of  shares  taken  from  the  commence- 
ment of  the  company  to  the  date  of  the  return. 

(c)  The  amount  called  up  on  each  share/ 

(d)  The  total  amount  of  calls  received. 

(e)  The  total  amount  of  calls  unpaid. 

(/)  The  total  amount  of  the  sums  (if  any)  paid  by 
way  of  commission  in  respect  of  any  shares  or  debentures, 
or  allowed  by  way  of  discount  in  respect  of  any  deben- 
tures, since  the  date  of  the  last  return. 

1  Companies   (consolidation)  act,  1908,  sec,  13. 

2  Companies  (consolidation)  act,  1908,  sec.  8. 

3  Companies   (consolidation)   act,  1908,  sec.  9. 

4  Companies   (consolidation)  act,  1908,  sec.  11. 

5  Companies   (consolidation)   act,  1908,  sec.  26. 


398  LAWS   ON   TKUSTS   AND   MONOPOLIES. 

(<7)   The  total  number  of  shares  forfeited. 

(h)  The  total  amount  of  shares  or  stock  for  which 
share  warrants  are  outstanding  at  tire  date  of  the  return. 

(i)  The  total  amount  of  share  warrants  issued  And 
surrendered,  respectively. 

(j)  The  number  of  shares  or  amount  comprised  in  each 
share  warrant. 

(k)  The  names  and  addresses  of  directors. 

(I)  The  total  debt  due  from  the  company  in  respect 
of  all  mortgages  and  charges.1 

(1)  For  the  purpose  of  securing  any  issue  of  deben- 
tures. 

(2)  On  uncalled  capital. 

(3)  Created  or  evidenced  by  an  instrument  which,  if 
executed  by  an  individual,  would  require  registration,  as 
a  bill  of  sale. 

(4)  On  any  land  or  interest  therein. 

(5)  On  any  book  debts. 

(6)  Or  a  floating  charge  on  the  undertaking  or  prop- 
erty of  the  company.2 

7.  A  balance  sheet  audited  by  the  company's  auditors 
(except  where  the  company  is  a  private  company),  con- 
taining a  summary  of  its  share  capital,  its  liabilities,  and 
its  assets,  giving  such  particulars  as  will  disclose  the  gen- 
eral nature  of  those  liabilities  and  assets,  how  the  values 
of  the  fixed  assets  have  been  arrived  at,  and  showing  the 
total  amount  (if  any)  paid  in  commissions  for  subscrip- 
tions to  shares  or  debentures,3  but  it  need  not  include  a 
statement  of  profit  and  loss.1 

8.  A  statutory  report,  certified  by  two  directors,  a  copy 
of  which  has  been  sent  to  every  member  of  the  company 
at  least  seven  days  before  a  general  meeting,  called  the 
statutory  meeting,  held  not  less  than  one  month  nor  more 
than  three  months  from  the  date  at  which  the  company 
is  entitled  to  commence  business. 

The  obvious  purpose  of  the  statutory  meeting  with  its  prelimi- 
nary report  is  to  put  the  shareholders  of  the  company  as  early  as 
possible  in  possession  of  all  the  important  facts  relating  to  the 
new  company.  *  *  *  Furnished  with  these  particulars,  the 
shareholders  are  to  have  an  opportunity  of  meeting  and  discussing 
the  whole  situation — the  management,  methods,  and  prospects  of 
the  company.  If  the  shareholders  fail  to  do  so,  they  have  only 
themselves  to  blame." 

1  Companies   (consolidation)   act,  1908,  sec.  26. 

2  Companies  (consolidation)  act,  1908,  sec.  93. 
8  Companies   (consolidation)   act,  1908,  sec.  90. 
*  Palmer's  Company  Law   (7th  ed.),  p.  158. 


GKEAT  BKITAIN.  399 

This  report  must  show— 

(a)  The  total   shares   allotted,   distinguishing   shares 
allotted  as  fully  or  partly  paid  up  or  otherwise  than  in 
cash,  and  stating  in  the  case  of  shares  partly  paid  up  the 
extent  to  which  they  are  so  paid  up,  and  in  either  case  the 
consideration  for  which  they  have  been  allotted. 

(b)  The  total  amount  of  cash  received  by  the  company 
in  respect   of  all   the   shares  allotted,  distinguished   as 
aforesaid. 

(c)  An  abstract  of  the  receipts  of  the  company  on 
account  of  its  capital,  whether  from  shares  or  debentures, 
and  of  the  payments  made  thereout,  up  to  within  seven 
days  of  the  date  of  the  report,  exhibiting  under  distinctive 
headings  the  receipts  of  the  company  from  shares  and 
debentures  and  other  sources  the  payments  made  there- 
out, and  particulars  concerning  the  balance  remaining  in 
hand,  and  an  account  or  estimate  of  the  preliminary  ex- 
penses of  the  company. 

(d)  The  names,  addresses,  and  descriptions  of  the  di- 
rectors, auditors,  managers,  and  secretary. 

(e)  The  particulars  of  any  contract,  the  modification  of 
which  is  to  be  submitted  to  the  meeting  for  its  approval, 
together  with  the  particulars  of  the  proposed  modifica- 
tion.1    (This  statutory  report  need  not  be  forwarded  or 
filed  by  a  private  company.) 

9.  Copies  of  every  special  and  extraordinary  resolu- 
tion.2 

10.  Copies  of  every  "  prospectus  "  issued  by  or  on  be- 
half of  a  company,  or  any  person  who  is  or  has  been 
engaged  in  the  formation  of  the  company. 

The  discipline  exercised  by  the  act  is  largely  by  means 
of  the  provisions  in  respect  of  this  document,  which  is  de- 
fined as  any  "  notice,  circular,  advertisement,  or  other 
invitation,  offering  to  the  public  for  subscription  or  pur- 
chase any  shares  or  debentures  of  a  company."  To  com- 
ply with  the  requirements  of  the  act,  the  prospectus  must 
show— 

(a)  The  contents  of  the  memorandum,  with  the  names, 
descriptions,  and  addresses  of  the  signatories,  and  the 
number  of  shares  subscribed  for  by  them,  respectively; 
and  the  number  of  founders  or  management  or  deferred 
shares,  if  any,  and  the  nature  and  extent  of  the  interest 
of  the  holders  in  the  property  and  profits  of  the  company ; 
and 

1  Companies   (consolidation)   act,  1908,  sec.  65. 

2  Companies   (consolidation)   act,  1908,  sec.  70. 


400  LAWS    ON    TRUSTS   AND    MONOPOLIES. 

(6)  The  number  of  shares,  if  any,  fixed  by  the  articles 
as  the  qualification  of  a  director,  and  any  provision  in  the 
articles  as  to  the  remuneration  of  the  directors ;  and 

(c)  The   names,    descriptions,    and   addresses   of   the 
directors  or  proposed  directors;  and 

(d)  The  minimum  subscription  on  which  the  directors 
may  proceed  to  allotment,  and  the  amount  payable  on 
application  and  allotment  on  each  share ;  and  in  the  case 
of  a  second  or  subsequent  offer  of  shares,  the  amount 
offered  for  subscription  on  each  previous  allotment  made 
within  the  two  preceding  years,  and  the  amount  actually 
allotted,  and  the  amount,  if  any,  paid  on  the  shares  so 
allotted;  and 

(e)  The  number  and  amount  of  shares  and  debentures 
which  within  the  two  preceding  years  have  been  issued, 
or  agreed  to  be  issued,  as  fully  or  partly  paid  up  other- 
wise than  in  cash,  and  in  the  latter  case  the  extent  to 
which  they  are  so  paid  up,  and  in  either  case  the  consid- 
eration for  which  those  shares  or  debentures  have  been 
issued  or  are  proposed  or  intended  to  be  issued ;  and 

(/)  The  names  and  addresses  of  the  vendors  of  any 
property  purchased  or  acquired  by  the  company,  or  pro- 
posed to  be  purchased  or  acquired,  which  is  to  be  paid 
for  wholly  or  partly  out  of  the  proceeds  of  the  issue 
offered  for  subscription  by  the  prospectus,  or  the  pur- 
chase or  acquisition  of  which  has  not  been  completed  at 
the  date  of  issue  of  the  prospectus,  and  the  amount  pay- 
able in  cash,  shares,  or  debentures,  to  the  vendor,  and 
where  there  is  more  than  one  separate  vendor,  or  the  com- 
pany is  a  subpurchaser,  the  amount  so  payable  to  each 
vendor:  Provided,  That  where  the  vendors,  or  any  of 
them,  are  a  firm  the  members  of  the  firm  shall  not  be 
treated  as  separate  vendors ;  and 

(g)  The  amount  (if  any)  paid  or  payable  as  pur- 
chase money  in  cash,  shares,  or  debentures,  for  any  such 
property  as  aforesaid,  specifying  the  amount  (if  any), 
payable  for  good  will;  and 

(h)  The  amount  (if  any)  paid  within  the  two  pre- 
ceding years,  or  payable,  as  commission  for  subscribing 
or  agreeing  to  subscribe,  or  procuring  or  agreeing  to 
procure  subscriptions,  for  any  shares  in,  or  debentures  of. 
the  company,  or  the  rate  of  any  such  commission:  Pro- 
vided, That  it  shall  not  be  necessary  to  state  the  com- 
mission payable  to  subunderwriters ;  and 


GKEAT  BEITAIN.  401 

(i)  The  amount  or  estimated  amount  of  preliminary 
expenses;  and 

(j)  The  amount  paid  within  the  two  preceding  years 
or  intended  to  be  paid  to  any  promoter,  and  the  consider- 
ation for  any  such  payment;  and 

(k)  The  dates  of  and  parties  to  every  material  con- 
tract and  a  reasonable  time  and  place  at  which  any  ma- 
terial contract  or  a  copy  thereof  may  be  inspected :  Pro- 
vided, That  this  requirement  shall  not  apply  to  a  con- 
tract entered  into  in  the  ordinary  course  of  the  business 
carried  on  or  intended  to  be  carried  on  by  the  company, 
or  to  any  contract  entered  into  more  than  two  years  be- 
fore the  date  of  issue  of  the  prospectus ;  and 

(I)  The  names  and  addresses  of  the  auditors  (if  any) 
of  the  company ;  and 

(m)  Full  particulars  of  the  nature  and  extent  of  the 
interest  (if  any)  of  every  director  in  the  promotion  of, 
or  in  the  property  proposed  to  be  acquired  by,  the  com- 
pany, or,  where  the  interest  of  such  a  director  consists  in 
being  a  partner  in  a  firm,  the  nature  and  extent  of  the  in- 
terest of  the  firm,  with  a  statement  of  all  sums  paid  or 
agreed  to  be  paid  to  him  or  to  the  firm  in  cash  or  shares 
or  otherwise  by  any  person,  either  to  induce  him  to  be- 
come, or  to  qualify  him  as,  a  director  or  otherwise  for 
services  rendered  by  him  or  by  the  firm  in  connection 
with  the  promotion  or  formation  of  the  company ;  and 

(n)  Where  the  company  is  a  company  having  shares 
or  more  than  one  class  the  right  of  voting  at  meetings 
of  the  company  conferred  by  the  several  classes  of  shares. 
respectively.1 

11.  A  company  which  does  not  issue  a  prospectus  shall 
not  allot  any  shares  or  debentures  unless  there  has  been 
filed  with  the  registrar  of  companies  a  statement  in  lieu 
of  a  prospectus  signed  by  every  person  named  as  a  di- 
rector or  a  proposed  director  and  containing  the  partic- 
ulars set  out  in  the  following  form.2  (A  private  com- 
pany is  not  required  to  file  a  prospectus  or  a  statement 
in  lieu  of  a  prospectus.) 

1  Companies   (consolidation)   act,  1908,  sec.  81. 

2  Companies   (consolidation)   act,  1908,  sec.  82. 
16491—13 26 


402 


LAWS   ON    TRUSTS   AND    MONOPOLIES. 


Statement  in  lieu  of  prospectus  filed,  ~by  — 
section   82   of   the   companies    (consolidation) 
sentcd  for  filing  l>y . 


(Ltd.),  pursuant  to 
act,   1908.    Pre- 


The  nominal  share  capital  of  the  company- 


Divided  into 

Names,  descriptions,  and  addresses  of  directors  or 

S-pposed  directors 
imum  subscription  (if  any)  fixed  by  the  memo- 
.randum  or  articles  of  association  on  which  the 
company  may  proceed  to  allotment 

Number  and  amount  of  shares  and  debentures 
agreed  to  be  issued  as  fully  or  partly  paid  up 
otherwise  than  in  cash 

The  consideration  for  the  intended  issue  of  those 
shares  and  debentures 

Names  and  addresses  of  vendors  1  of  property  pur- 
chased or  acquired  or  proposed  to  be  purchased  2 
or  acquired  by  the  company 

Amount  (in  cash,  shares,  or  debentures)  payable  to 
each  separate  vendor 


Amount  (if  any)  paid  or  payable  (in  cash  or  shares 
or  debentures)  for  any  such  property,  specifying 
amount  (if  any)  paid  or  payable  for  good  will. . 

Amount  (if  any)  paid  or  payable  as  commission  for 
subscribing  or  agreeing  to  subscribe  or  procuring 
or  agreeing  to  procure  subscriptions  for  any 
shares  or  debentures  in  the  company,  on 

Rate  of  the  commission . . 


Amount  paid  or  intended  to  be  paid  to  any  pro- 
moter  , 

Consideration  for  the  payment 

Dates  of  and  parties  to  every  material  contract 
(other  than  contracts  entered  into  in  the  ordi- 
nary course  of  the  business  intended  to  be  car- 
ried on  by  the  company  or  entered  into  more 
than  two  years  before  the  filing  of  this  statement) . 

Time  and  place  at  which  the  contracts  of  copies 
thereof  may  be  inspected 

Names  and  addresses  of  the  auditors  of  the  com- 
pany (if  any) 

Full  particulars  of  the  nature  and  extent  of  the 
interest  of  every  director  in  the  promotion  of  or 
in  the  property  proposed  to  be  acquired  by  the 
company,  or,  where  the  interest  of  such  a  director 
consists  in  being  a  partner  in  a  firm  the  nature 
and  extent  of  the  interest  of  the  firm,  with  a 
statement  of  all  sums  paid  or  agreed  to  be  paid 
to  him  or  to  the  firm  in  cash  or  shares,  or  other- 
wise, by  any  person  either  to  induce  him  to  be- 
come, or  to  qualify  him  as  a  director,  or  otherwise 
for  services  rendered  by  him  or  by  the  firm  in 
connection  with  the  promotion  or  formation  of 
the  company . 

Whether  the  articles  contain  any  provisions  pre- 
cluding holders  of  shares  or  debentures  receiving 
and  inspecting  balance  sheets  or  reports  of  the 
auditors  or  other  reports 


Shares  of  £ each. 

Shares  of  £ each. 

Shares  of  £. . each. 


1 shares  of  £ fully  paid. 

2 shares  upon  which  £ 

per  share  credited  as  paid. 

3 debenture,  £ 

4.  Consideration. 


Total  purchase  price. .  £. 

Cash £. 

Shares £. 

Debentures £. 

Goodwill £. 


[Amount  paid. 
Amount  payable. 

Rate,  percent. 

£ 

(Name  of  promoter. 
\.Amount,  £ 

Consideration. 


Nature  of  the  provisions. 


1  For  definition  of  vendor  see  section  81  (2)  of  the  companies  (consolidation)  act,  1908. 

2  See  section  81  (3)  of  the  companies  (consolidation)  act,  1908. 

(Signatures  of  the  persons  above  named  as  directors  or  proposed 
directors,  or  of  their  agents  authorized  in  writing.) 


12.  Notice  of  the  consolidation  or  division  of  share 
capital  into  shares  of  a  larger  amount,  or  the  conversion 


GREAT  BRITAIN,  403 

of  shares  into  stock,  or  a  reconversion  of  stock  into  shares- 
shall  be  filed  with  the  registrar  of  companies.1 

13.  Copy  of  order  of  the  court  approving  any  reduc- 
tion of  capital.2 

14.  Particulars  of  any  mortgage  or  charge  for  the  pur- 
pose of  securing  any  issue  of  debentures,  or  on  uncalled 
share  capital,  or  created  or  evidenced  by  an  instrument 
which,  if  executed  by  an  indivdual,  would  require  reg- 
istration as  a  bill  of  sale,  or  on  any  land  or  interest 
therein,  or  on  book  debts,  or  a  floating  charge  on  the 
undertaking  or  property  of  the  company,  together  with 
a  cop}^  of  the  instrument.3 

15.  Particulars  as  to  debentures  as  follows:  The  total 
amount  secured  by  the  series,  the  dates  of  the  resolutions 
authorizing  the  issue,  the  date  of  the  deed   (if  any),  a 
general  description  of  the  property  charged,  the  names 
of  the  trustees  (if  any)  for  the  debenture  holders,  the  rate 
per  cent  of  any  commission  paid  for  subscriptions,  to- 
gether with  the  deed  containing  the  charge,  or  if  there 
is  no  such  deed,  a  copy  of  one  of  the  debentures.3 

16.  Notice  of  the  appointment  of  a  receiver.4 

17.  Semiannual  abstract  of  receipts  and  disbursements 
of  a  receiver,  and  a  notice  that  he  has  ceased  to  act.5 

18.  Notice  of  any  winding-up  order  made  by  the  court.8 

19.  A  copy  of  the  report  of  the  official  liquidator  of  a 
company  being  wound  up  by  the  court,  showing  receipts 
and  disbursements  and  the  progress  of  the  liquidation.7 
(For  the  inspection  of  creditors  and  interested  persons 
only.) 

20.  A  statement  to  the  official  receiver  by  the  directors 
and  chief  officer  of  a  company  being  wound  up  by  the 
court,  containing  particulars  of  its  assets  and  liabilities, 
names,  residences,  and  occupations  of  its  creditors,  the 
securities  held  by  them,  respectively,  the  dates  when  such 
securities  were  given,  and  such  further  information  as 
may  be  prescribed  or  as  the  receiver  may  require.8     (This 
is  open  to  inspection  by  creditors  or  contributors  only.) 

1  Companies  (consolidation)  act,  1908,  sec.  42. 

2  Companies  (consolidation)  act,  1908,  sec.  51. 

3  Companies  (consolidation)  act,  1908,  sec.  93. 

4  Companies  (consolidation)  act,  1908,  sec.  94. 

5  Companies  (consolidation)  act,  1908,  sec.  95. 

0  Companies  (consolidation)  act,  1908,  sec.  143. 

7  Companies  (consolidation)  act,  1908,  sec.  155. 

8  Companies  (consolidation)  act,  1908,  sec.  147. 


404  LAWS   ON   TRUSTS  AND   MONOPOLIES. 

21.  Notice  that  a  meeting  of  the  company,  called  by  the 
liquidator  in  case  of  a  voluntary  winding  up,  for  the  pur- 
pose of  explaining  his  final  account,  has  been  held. 

22.  Three  months  after  registration  of  this  notice  the 
company  shall  be  deemed  dissolved,  unless  the  dissolution 
is  deferred  by  the  court  for  cause  shown  by  an  interested 
party.1 

23.  A  copy  of  any  order  of  a  court  declaring  a  dissolu- 
tion void  upon  the  application  of  the  liquidator  or  other 
interested  party  within  two  years  of  the  date  of  the 
original  order  of  dissolution.2 

Registration  office  and  fees. — There  shall  be  offices  for 
the  registration  of  companies  at  such  places  as  the  board 
of  trade  think  fit,  and  documents  kept  by  the  registrar 
may  be  inspected  by  any  person,  who  may  also  obtain  cer- 
tified copies  upon  the  payment  of  reasonable  fees  for  such 
inspection  or  copies.  A  certified  copy  so  obtained  shall 
be  of  equal  validity  with  the  original  in  all  legal  pro- 
ceedings.3 

24.  A  return  of  allotments  of  shares,  from  both  private 
and  public  companies,  stating  the  number  and  nominal 
amount  of  the  shares  in  the  allotment,  the  names,  ad- 
dresses, and  descriptions  of  the  allottees,  and  the  amount 
(if  any)  paid  or  due  on  each  share,  and  in  the  case  of 
shares  allotted  as  fully  or  partly  paid  up  otherwise  than 
in  case,  a  contract  in  writing  constituting  the  title  of  the 
allottee,  together  with  any  contract  of  sale  or  for  services 
or  other  consideration  in  respect  of  which  the  allotment 
was  made,  and  a  return  stating  the  number  and  nominal 
amount  of  shares  so  allotted,  the  extent  to  which  they  are 
to  be  treated  as  paid  up,  and  the  consideration  for  which 
they  have  been  allotted.     In  the  absence  of  a  written  con- 
tract the  particulars  indicated  on  the  following  form  shall 
be  filed  with  the  registrar.4 

1  Companies  (consolidation)  act,  1908,  sec.  195. 

2  Companies  (consolidation)  act,  1908,  sec.  223. 
8  Companies  (consolidation)  act,  1908,  sec.  243. 

4  Companies  (consolidation)  act,  1908,  sec.  88,  Form  52,  order  of  1909. 


GKEAT   BKITAIN. 


405 


Particulars  prescribed  under  section  88,  subsection  (2).     Filed 
by  -     —  (Ltd.).    Presented  for  filing  by . 

[In  cases  where  a  contract  such  as  is  mentioned  in  paragraph  (6)  of  subsection  (1)  of 
section  88  of  the  companies  (consolidation)  act,  1908,  is  not  reduced  to  writing,  the  com- 
pany must,  within  the  time  limited  in  the  said  section,  file  with  the  registrar  of  joint- 
stock  companies  the  following  particulars  of  the  contract,  which  particulars  must  be 
stamped  with  the  same  stamp  duty  as  would  have  been  payable  if  the  contract  had 
been  reduced  to  writing.] 


(1)  The  number  of  shares,  in  whole  or  in  part,  allotted  for  a  consideration  other 

than  cash 

(2)  If  the  consideration  for  the  allotment  of  any  shares  is  services,  or  any  consid- 

eration other  than  that  mentioned  below  in  part  3,  state  what  such  con- 
sideration consists  of 

(3)  If  the  consideration  for  the  allotment  of  any  shares  is  a  sale  of  property,  or 

the  agreement  for  sale  of  property,  state  fully  the  consideration  for,  and 
other  terms  of,  such  sale  or  agreement  for  sale 

(4)  Give  full  particulars,  in  the  form  of  the  following  table,  of  the  property 

which  is  the  subject  of  the  sale,  showing  in  detail  how  the  total  considera- 
tion is  apportioned  between  the  respective  heads: 

Equitable  estates,  or  interests  in  freeholds  and  leaseholds,  whether  in 
the  United  Kingdom  or  abroad  (which  includes  hereditaments  sub- 
ject to  a  legal  mortgage) 

Patents,  licenses,  trade-marks,  and  copyrights 

Good  will 

Fixtures  and  fittings 

Books  and  other  debts  (including  money  on  deposit  at  bank  or  else- 
where)   

Benefit  of  contracts 

Other  property,  viz:  —  — 


Total. 


(5)  If  the  consideration  payable  is  partly  in  respect  of  a  sale  of  property  or  agree- 
ment for  a  sale  of  property  and  partly  in  respect  of  some  other  considera- 
tion, state  fairly  how  much  of  the  amount  of  the  consideration  is  attribu- 
table to  each  of  the  heads  of  the  property  sold  or  agreed  to  be  sold  and 
how  much  to  such  other  consideration 


(6)  If  the  consideration  payable  consists  in  the  assumption  by  the  purchaser  of 
liabilities  to  third  persons,  specify  the  total  amount  of  such  liabilities 


I- 


(Signature.) 


Date  — 


(Designation  of  position  in  relation  to  the  company.) 
PENALTIES. 


The  provisions  of  the  act  of  1908  are  enforced  by  a 
number  of  penalties,  the  most  important  of  which  are  the 
following : 

Default  in  filing  a  copy  of  the  prospectus  with  the  registrar  of 
companies. 

Penalty :  The  company,  and  every  person  knowingly  a  party  to 
the  issue  of  the  prospectus,  is  liable  to  a  fine  not  exceeding  £5  for 
every  day  from  the  date  of  issue  until  a  copy  is  filed.1 

Untrue  statements  in  a  prospectus. 

Penalty :  Every  person  shall  be  liable  to  compensate  all  sub- 
scribers for  loss  sustained  by  reason  of  such  untrue  statement, 
unless  he  had  reasonable  grounds  for  belief  that  the  statement 
was  true,  or  that,  having  consented  to  become  a  director,  he  with- 
drew his  consent,  and  that  the  prospectus  was  issued  without  his 
consent ;  or  that,  on  becoming  aware  of  its  issue  without  his  con- 
sent, he  gave  public  notice  of  the  fact.1 

Unauthorized  use  of  director's  name  in  a  prospectus.2 


1  Companies  (consolidation)  act,  1908,  sec.  80. 

2  Companies  (consolidation)  act,  1908,  sec.  84. 


406  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

Unauthorized  use  of  name  of  a  person  as  director  in  the  lisc 
of  directors  filed  with  registrar  of  companies,  upon  application 
for  registration  of  the  company. 

Penalty :  The  person  applying  for  registration  is  liable  to  a  fine 
not  exceeding  f  50.1 

Violation  of  the  provisions  of  the  net  in  respect  of  allotment. 

Penalty :  Allotment  voidable  for  one  month  after  holding  statu- 
tory meeting,  and  any  director  who  knowingly  contravenes  or 
permits  the  contravention  of  these  provisions  is  liable  to  com- 
pensate the  company  and  the  allottee  for  any  loss,  damages,  or 
costs  sustained.  Period  of  limitation,  two  years  from  date  of 
allotment.2 

A  company  shall  not  commence  business  or  exercise  borrowing 
powers  unless — 

Shares  held  subject  to  the  payment  of  the  whole  amount  in 
cash  have  been  allotted  to  an  amount  not  less  in  the  whole  than 
the  minimum  subscription,  and 

Every  director  has  paid  on  each  of  his  shares  the  same  pro- 
portion that  is  payable  on  the  allotment  of  shares  offered  to  the 
public,  and 

There  has  been  filed  with  the  registrar  of  companies  a  statutory 
declaration  by  the  secretary  or  a  director  that  the  above  condi- 
tions have  been  complied  with ; 

In  the  case  of  a  company  which  does  not  issue  a  prospectus, 
there  has  been  filed  a  statement  in  lieu  of  a  prospectus. 

Penalty :  Any  contract  made  before  a  company  is  entitled  to 
commence  business  is  provisional  only,  and  shall  not  bind  the 
company  until  that  date.  Every  person  responsible  for  the  con- 
travention shall,  without  prejudice  to  any  other  liability,  be 
liable  to  a  fine  not  exceeding  £50  for  every  day  during  which  it 
continues." 

NOTE. — The  above  section  does  not  apply  to  private  companies. 

Default  of  a  limited  company  when  allotting  shares  to  file, 
within  a  month,  a  return  showing  the  number  and  nominal  amount 
of  shares  allotted,  and  amount  paid  or  payable  on  each  share;  or, 
if  shares  are  allotted  as  fully  or  partially  paid  up  otherwise  than 
in  cash,  to  file  a  contract  showing  the  title  of  allottee  and  any 
contract  of  sale,  or  for  services,  or  other  consideration  for  allot- 
ment, together  with  a  return  showing  number  and  nominal  amount 
of  shares  allotted,  extent  to  which  treated  as  paid  up,  and  con- 
sideration for  which  allotted;  or,  if  the  contract  above  described 
be  not  in  writing,  to  file  the  prescribed  particulars  of  contract. 
( See  form,  p.  — . ) 

Penalty :  Every  officer  knowingly  a  party  to  the  default  is  liable 
to  a  fine  not  exceeding  £50  for  every  day  during  which  default 
continues.  Provided,  that  the  court,  in  its  discretion,  may  relieve 
from  the  penalty  and  extend  the  time  for  filing.4 

Default  in  holding  the  statutory  meeting  or  filing  the  statutory 
report. 

Penalty:  The  company  may  be  wound  up  by  the  court  at  the 
instance  of  a  shareholder,  and  costs  may  be  charged  to  any 

1  Companies  (consolidation)  act,  1908,  sec.  72. 

2  Companies  (consolidation)  act,  1908,  sec.  86. 
8  Companies  (consolidation)  act,  1908,  sec.  87. 
*  Companies  (consolidation)  act,  1908,  sec.  88. 


GBEAT   BRITAIN.  407 

person  who,  in  the  opinion  of  the  court,  is  responsible  for  the 
default1 

Default  in  keeping  at  the  company's  registered  office  a  list  of 
directors  or  managers,  with  their  names,  addresses,  and  occupa- 
tions; and  in  filing  a  copy  of  said  list  and  all  changes  with  the 
registrar  of  companies. 

Penalty :  The  company,  and  every  director  and  manager  know- 
ingly and  willfully  authorizing  or  permitting  the  default,  is  liable 
to  a  fine  not  exceeding  £5  for  each  day  of  the  default.* 

Refusal  to  permit  inspection  of  the  company's  register  of  mem- 
bers by  any  member  gratis,  and  by  any  other  person  upon  payment 
of  6d. ;  or — 

Refusal  to  furnish  copies  upon  payment  of  fees  prescribed. 

Penalty:  The  company,  and  every  director  and  manager  who 
knowingly  authorizes  or  permits  the  refusal,  is  liable  to  a  fine  not 
exceeding  £2  for  each  refusal,  and  a  further  fine  of  not  exceeding 
£2  for  each  day  during  which  the  refusal  continues,  and  the  high 
court  may  compel  an  immediate  compliance.3 

Default  in  keeping  a  register  of  mortgages  and  charges  showing 
particulars  in  each  case. 

Penalty:  Every  director,  manager,  or  other  officer  of  the  com- 
pany who  knowingly  and  willfully  authorizes  or  permits  the  omis- 
sion of  any  entry  is  liable  to  a  fine  not  exceeding  £50.4 

Default  in  furnishing  the  registrar  with  the  particulars  and  a 
copy  of  any  mortgage  or  charge  on  the  property,  capital,  book 
debts,  etc.,  of  the  company. 

Penalty:  Security  is  void  against  the  liquidator  or  creditors, 
but  without  prejudice  to  the  obligation  to  repay  the  money  so 
secured,  which  becomes  immediately  payable.8 

Default  in  filing  with  the  registrar  of  companies  the  "  particu- 
lars "  of  any  mortgage  or  charge  created  by  the  company. 

Penalty:  The  company,  and  every  director,  manager,  secretary, 
or  other  person  knowingly  a  party  to  the  default,  is  liable  to  a  fine 
not  exceeding  £50  for  every  day  during  which  the  default  con- 
tinues.6 

Default  in  filing  with  the  registrar  of  companies  a  copy  of  any 
mortgage  or  charge  created  by  the  company. 

Penalty:  The  company,  and  every  director,  manager,  and  other 
officer  of  the  company  who  knowingly  and  willfully  authorized 
or  permitted  the  default,  is,  without  prejudice  to  any  other 
liability,  liable  on  summary  conviction  to  a  fine  not  exceeding 
£100.7 

Default  in  indorsing  upon  any  debenture  or  certificate  of  deben- 
ture stock,  before  delivery,  a  copy  of  the  certificate  of  registration. 

Penalty:  Any  person  knowingly  and  willfully  authorizing  or 
permitting  such  default  is,  without  prejudice  to  any  other  liability, 
liable  on  summary  conviction  to  a  fine  not  exceeding  £100.8 

1  Companies  (consolidation)  act,  1908,  sees.  129,  137  (b),  141  (2). 

2  Companies  (consolidation)  act,  1908,  sec.  75. 

3  Companies  (consolidation)   act,  1908,  sec.  30. 
*  Companies  (consolidation)  act,  1908,  sec.  100. 
s  Companies  (consolidation)  act,  1908,  sec.  93. 

6  Companies   (consolidation)   act,  1908,  sec.  99. 
'Companies  (consolidation)  act,  1908,  sec.  99  (2). 
8  Companies  (consolidation)   act,  1908,  sec.  99  (s). 


408  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

Default  in  permitting  an  inspection  of  the  company's  register 
of  mortgages  and  charges  by  members  of  the  company  without 
charge,  and  by  other  persons  upon  payment  of  Is.,  and 

Default  in  permitting  an  inspection  of  copies  of  the  instruments 
by  members  of  the  company  without  charge. 

Penalty :  Any  officer  refusing  inspection,  and  every  director  and 
manager  authorizing  or  knowingly  and  willfully  permitting  the 
refusal,  is  liable  to  a  fine  not  exceeding  £5  and  a  further  fine 
not  exceeding  £2  for  every  day  during  which  the  refusal  continues, 
and  the  high  court  may  compel  an  immediate  inspection.1 

Default  in  permitting  debenture  holders  and  shareholders  to 
inspect  the  register  of  debenture  holders,  and  in  furnishing  copies 
to  any  debenture  holder  of  any  trust  deed  securing  any  issue  of 
debentures,  upon  payment  of  the  prescribed  fee. 

Penalty :  The  company,  and  every  director  or  other  officer  who 
knowingly  authorizes  or  permits  the  refusal,  is  liable  to  a  fine 
not  exceeding  £5  and  a  further  fine  of  not  exceeding  £2  for  each 
day  during  which  the  refusal  continues.2 

Default  in  forwarding  a  copy  of  every  special  or  extraordinary 
resolution  to  the  registrar  of  companies. 

Penalty:  The  company,  and  every  director  and  manager  who 
knowingly  and  willfully  authorizes  or  permits  any  such  default, 
is  liable  to  a  fine  not  exceeding  £2  for  every  day  during  which 
the  default  continues.3 

Default  in  annexing  a  copy  of  every  special  resolution  in  force 
to  copies  of  the  registered  articles  subsequently  issued,  or,  where 
there  are  no  registered  articles,  default  in  forwarding  the  resolu- 
tion to  any  member  upon  payment  of  Is. 

Penalty :  The  company,  and  every  director  and  manager  know- 
ingly and  willfully  authorizing  or  permitting  the  default,  is  liable 
to  a  fine  not  exceeding  £1  for  each  copy  in  respect  of  which 
default  is  made.3 

Default  in  indicating  on  copies  of  the  memorandum  of  associa- 
tion issued  any  alteration  of  capital  or  shares. 

Penalty :  The  company,  and  every  director  and  manager  who 
knowingly  and  willfully  authorizes  or  permits  the  default,  is  liable 
to  a  fine  not  exceeding  £1  for  each  copy  so  issued.4 

Default  in  notifying  the  registrar  of  companies  of  any  special 
resolution  authorizing  the  increase  of  capital  beyond  its  registered 
capital,  or,  in  case  of  a  company  not  having  a  share  capital,  of  the 
increase  in  the  number  of  members  beyond  the  registered  number. 

Penalty:  The  company,  and  every  director  and  manager  who 
knowingly  and  willfully  authorizes  or  permits  the  default,  is  liable 
to  a  fine  not  exceeding  £5  for  every  day  during  which  the  default 
continues.5 

Default  in  indicating  a  reduction  of  capital  upon  any  copies  of 
the  memorandum  of  association  subsequently  issued. 

1  Companies  (consolidation)  act,  1908,  sec.  101. 

2  Companies  (consolidation)  act,  1908,  sec.  102. 
8  Companies  (consolidation)  act,  1908,  sec.  70. 

4  Companies  (consolidation)  act,  1908,  sec.  41. 

5  Companies  (consolidation)  act,  1908,  sec.  44. 


GKEAT  BRITAIN.  409 

Penalty:  The  company,  and  every  director  and  manager  know- 
ingly and  willfully  authorizing  the  default,  is  liable  to  a  fine  not 
exceeding  £1  for  each  copy  so  issued.1 

Default  in  disclosing  to  the  court  the  name  of  any  creditor  enti- 
tled to  object  to  the  reduction  of  capital  or  misrepresenting  the 
nature  and  amount  of  any  claim. 

Penalty :  If  any  director,  manager,  or  officer  willfully  is  a  party 
to  or  is  privy  to  such  concealment  or  misrepresentation,  he  shall 
be  guilty  of  a  misdemeanor.2 

Default  in  filing  with  the  registrar  of  companies  an  order  of  the 
court  confirming  any  alteration  in  the  memorandum  of  association 
with  regard  to  the  objects  of  the  company. 

Penalty :  The  company  is  liable  to  a  fine  not  exceeding  £10  for 
every  day  during  which  it  is  in  default.3 

Default  in  producing  documents  or  giving  answers  required  by 
inspectors  appointed  by  the  board  of  trade  during  an  investigation 
demanded  by  the  required  number  of  stockholders. 

Penalty :  A  fine  not  exceeding  £5  for  each  offense.4 

Default  in  notifying  registrar  of  companies  of  the  appointment 
of  a  receiver. 

Penalty :  The  person  obtaining  the  order,  or  appointed  the  re- 
ceiver under  the  powers  contained  in  any  instrument,  is  liable  to  a 
fine  not  exceeding  £5  for  every  day  during  which  the  default 
continues.5 

Default  by  receiver  appointed  under  the  powers  in  any  instru- 
ment, in  filing  an  abstract  of  receipts  and  expenditures  once  in 
every  half  year,  or  in  filing  notice  that  he  has  ceased  to  act  as 
receiver. 

Penalty :  A  fine  not  exceeding  £50.8 

Destruction,  mutilation,  alteration,  or  falsification  of  any  books, 
papers,  or  securities  of  any  company  being  wound  up  with  intent 
to  defraud  or  deceive  any  person. 

Penalty :  Any  director,  officer,  or  contributory  guilty  of  the  above 
shall  be  liable  to  imprisonment  for  a  term  not  exceeding  two 
years,  with  or  without  hard  labor.7 

Default  by  the  liquidator,  in  the  case  of  a  voluntary  winding 
up,  in  filing  a  return  to  the  registrar  of  companies  of  the  holding 
of  a  general  meeting  for  the  purpose  of  laying  his  final  accounts 
before  it. 

Default  by  any  person  applying  for  and  securing  an  order  of  the 
court  deferring  the  dissolution  of  the  company  in  filing  a  copy  of 
such  order  with  the  registrar  of  companies. 

Penalty:  A  fine  of  £5  for  every  day  during  which  the  default 
continues.8 

Forgery  or  alteration  of  any  share  warrant  or  coupon  with  in- 
tent to  defraud,  or  falsely  personating  the  owner  of  any  share, 
thereby  endeavoring  to  receive  any  money  due  to  the  true  owner. 

1  Companies  (consolidation)  act,  1908,  sec.  52. 

2  Companies  (consolidation)  act,  1908,  sec.  54. 

3  Companies  (consolidation)  act,  1908,  sec.  9  (7). 

4  Companies'  (consolidation)  act,  1908,  sec.  109. 

5  Companies  (consolidation)  act,  1908,  sec.  94. 

6  Companies  (consolidation)  act,  1908,  sec.  95. 

7  Companies  (consolidation)  act,  1908,  sec.  216. 

8  Companies  (consolidation)  act,  1908,  sec.  195. 


410  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

Penalty :  Any  person  guilty  of  the  above  shall  be  liable  to  penal 
servitude  for  life,  or  for  any  term  not  less  than  three  years,  in  the 
discretion  of  the  court  .* 

Engraving  or  making  without  lawful  authority  any  plate,  etc., 
of  any  share  warrant  or  coupon  of  any  company,  or  knowingly 
having  such  in  custody. 

Penalty :  Penal  servitude  for  not  less  than  3  nor  more  than  14 
years,  at  the  discretion  of  the  court.2 

If  any  person,  on  examination  on  oath  authorized  under  this  act, 
or  in  any  affidavit  or  deposition  in  or  about  the  winding  up  of  any 
company,  or  otherwise  in  or  about  any  matter  arising  under  this 
act,  willfully  and  corruptly  gives  false  testimony,  he  shall  be  liable 
to  the  penalties  for  willful  perjury. 

Any  person  willfully  making  a  statement  false  in  any  material 
particular,  knowing  it  to  be  false,  in  any  return,  report,  certifi- 
cate, balance  sheet,  or  other  document  relating  to  the  conclusive- 
ness  of  certificates  of  incorporation,  appointments  or  advertise- 
ments of  directors,  commencement  of  business,  returns  as  to 
allotments,  statutory  meetings,  particulars  as  to  directors  and 
mortgage  debt  and  the  statement  in  the  form  of  a  balance  sheet  in 
the  annual  summary ;  appointment,  remuneration,  powers,  and 
duties  of  auditors;  obligations  of  companies  where  no  prospectus 
is  issued ;  registration  of  mortgages  and  charges ;  filing  of  accounts 
of  receiver  and  manager ;  notice  by  liquidator  in  voluntary  wind- 
ing up  of  his  appointment ;  rights  of  creditors  in  voluntary  wind- 
ing up;  requirements  as  to  companies  established  outside  of  the 
United  Kingdom ;  annual  report  by  board  of  trade,  shall  be  guilty 
of  a  misdemeanor,  and  liable  on  conviction  on  indictment  to  im- 
prisonment not  exceeding  two  years,  with  or  without  hard  labor, 
and  on  summary  conviction  to  imprisonment  for  a  term  not  ex- 
ceeding four  months,  with  or  without  hard  labor,  and  in  either 
case  to  a  fine  in  lieu  of  or  in  addition  to  such  imprisonment: 
Provided,  That  the  fine  imposed  on  summary  conviction  shall  not 
exceed  £  100.2 

If  in  any  proceeding  against  a  director  of  a  company  for  negli- 
gence or  breach  of  trust  it  appears  that  such  person  is  or  may  be 
liable  in  respect  of  the  negligence  or  breach  of  trust,  but  has 
acted  honestly  and  reasonably  and  ought  fairly  to  be  excused,  the 
court  may  relieve  him,  either  wholly  or  partly,  from  his  liability 
on  such  terms  as  seem  proper.8 

Any  manager,  director,  or  public  officer  of  a  body  corporate  who 
shall  make,  or  concur  in  making,  circulating,  or  publishing  any 
written  statement  or  account  known  to  be  false  in  any  material 
particular,  with  intent  to  deceive  or  defraud  any  member,  share- 
holder, or  creditor  of  such  body  corporate,  or  to  induce  any  person 
to  become  a  shareholder,  or  to  intrust  or  advance  any  property  to 
such  body  corporate,  or  to  enter  into  any  security  for  its  benefit, 
shall  be  guilty  of  a  misdemeanor,  and  liable  to  be  kept  in  penal 
servitude  for  not  less  than  three  nor  more  than  seven  years,  or  to 
be  imprisoned  for  any  term  not  exceeding  two  years,  with  or  with- 
out hard  labor,  and  with  or  without  solitary  confinement.4 

1  Companies  (consolidation)  act,  1908,  sec.  38. 

2  Companies  (consolidation)  act,  1908,  sec.  281  and  Schedule  V. 
8  Companies  (consolidation)  act,  1908,  sec.  279. 

*  25  and  26  Viet.,  chap.  96,  sec.  84. 


GKEAT  BRITAIN.  411 

Default  in  furnishing  members  with  a  copy  of  the  memorandum 
and  articles  of  association  upon  the  payment  of  1  shilling. 

Penalty:  The  company  is  liable  to  a  fine  not  exceeding  fl  for 
each  offense.1 

Default  in  displaying  the  name  of  the  company  on  its  place  of 
business. 

Penalty :  The  company  is  liable  to  a  fine  not  exceeding  £5  for 
each  day,  and  every  director  and  manager  knowingly  and  willfully 
authorizing  or  permitting  the  default  is  liable  to  the  like  penalty.2 

Default  in  displaying  the  name  of  the  company  on  advertise- 
ments, official  publications,  negotiable  instruments,  etc.,  or  the  use 
of  a  seal  without  such  name  displayed  thereon. 

Penalty:  Every  director,  manager,  or  officer  authorizing  the 
issue  of  the  above  is  liable  to  a  fine  not  exceeding  £50,  and  is  per- 
sonally liable  on  the  instrument  unless  duly  paid  by  the  company.5 

Name  of  company. — The  purpose  of  the  legislature  in  requiring 
the  publication  of  the  company's  name  was  that  a  company  of 
liiniled  liability  should  continually  bring  to  the  notice  of  those 
who  might  deal  with  it  the  fact  that  it  is  "  limited." 

See  also  Atkin  &  Co.  v.  Wardle  and  others  (61  L.  T.,  23),  in 
which  the  South  Shields  Salt  Water  Baths  Co.  (Ltd.)  was  misde- 
scribed  in  a  bill  as  the  Salt  Water  Baths  Co.  (Ltd).  The  directors 
were  held  personally  liable  on  the  bill.3 

Default  in  notifying  the  registrar  of  companies  of  the  situation 
of  the  registered  office  of  the  company  and  any  change  therein. 

Penalty:  A  fine  not  exceeding  £5  for  every  dny  during  which 
the  default  continues.4 

Power  of  court  to  assess  damages  against  delinquent 
directors. — Where,  in  the  course  of  winding  up,  it  ap- 
pears that  any  person  who  has  taken  part  in  the  promo- 
tion, formation,  management,  or  liquidation  of  the  com- 
pany has  misapplied  or  otherwise  become  accountable 
for  any  property  of  the  company,  or  has  been  guilty  of 
a  breach  of  trust,  the  court  may  examine  into  the  con- 
duct of  such  person  and  compel  restoration  of  such 
money  or  property,  or  any  part  thereof,  without  preju- 
dice to  criminal  liability.5 

Prosecution  of  delinquent  directors. — If  it  appears  to 
the  court,  in  the  course  of  a  winding  up  by  or  subject  to 
the  supervision  of  the  court,  that  any  past  or  present 
director,  manager,  officer,  or  member  of  the  company  has 
been  guilty  of  any  offense  in  relation  to  the  company  for 
which  he  is  criminally  responsible,  the  court  may,  on  the 
application  of  any  person  interested  in  the  winding  up, 
or  of  its  own  motion,  direct  the  liquidator  to  prosecute 

1  Companies  (consolidation)  act,  1908,  sec.  18. 

2  Companies  (consolidation)  act,  1908,  sec.  63. 

3  Palmer's  Company  Law  (7th  ed.),  p.  244. 

4  Companies  (consolidation)  act,  1908,  sec.  62. 

8  Companies  (consolidation)  act,  1908,  sec.  215.  . 


412  LAWS   ON   TRUSTS  AND  MONOPOLIES. 

for  the  offense,  and  may  order  the  costs  and  expenses  to 
be  paid  out  of  the  assets  of  the  company.1 

If  it  appears  to  the  liquidator  in  the  course  of  a  volun- 
tary winding  up  that  any  past  or  present  director,  man- 
ager, officer,  or  member  of  the  company,  has  been  guilty 
of  any  offense  in  relation  to  the  company  for  which  he 
is  criminally  responsible,  he,  with  the  previous  sanction 
of  the  court,  may  prosecute  the  offender,  and  all  expenses 
properly  incurred  by  him  in  the  prosecution  shall  be 
payable  out  of  the  assets  of  the  company,  in  priority  to 
all  other  liabilities.2 

When  an  official  receiver  of  a  company  being  wound  up 
by  the  court  reports  that  in  his  opinion  fraud  has  been 
committed  by  any  person  in  the  promotion,  formation,  or 
management  of  the  company,  the  court  may  subject  such 
person  to  a  public  examination,  in  which  the  receiver, 
liquidator,  creditor,  and  contributory  may  take  part. 
Notes  of  the  examination  shall  be  taken  down  and  may 
be  used  in  evidence  against  the  person  so  examined.3 

The  following  table  indicates  the  extent  to  which  the 
provisions  of  the  company  law  of  England  in  respect  to 
publicity  have  been  adopted  throughout  the  Empire: 

1  Companies  (consolidation)  act,  1908,  sec.  217. 
3  Companies  (consolidation)  act,  1908,  sec.  215. 
3  Companies  (consolidation)  act,  1908,  sec.  175. 


GREAT  BRITAIN . 


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414  LAWS  ON   TRUSTS  AND  MONOPOLIES. 

OUTLINE   OF   THE   HISTORY   AND   ORGANIZATION    OF   BOARD   OF 
TRADE  OF  ENGLAND. 

Prior  to  1782  there  existed  in  England  a  body  known 
as  the  Board  of  Trade  and  Plantations,  whose  duties 
were,  when  requested,  to  consult  and  advise  the  Govern- 
ment on  commercial  questions.  Being  advisory :  with  no 
administrative  powers  and  only  intermittently  consulted, 
i(.  became  a  body  of  no  practical  importance,  and  was 
abolished  by  22  George  III  (c.  82,  s.  II,  XV,  1782),  and 
its  duties  transfered  to  a  committee  of  the  privy  council. 

In  1786  a  large  committee  was  appointed  for  the  con- 
sideration of  all  matters  relating  to  trade  and  foreign 
plantations,  the  appointment  being  based  on  the  act  of 
1782.1 

This  new  committee  was,  like  its  predecessor,  purely 
advisory.  It  was  entirely  discretionary  with  the  Govern- 
ment officials  whether  or  not  they  should  consult  the  com- 
mittee at  all,  or  act  on  its  advice  if  obtained.  During 
the  early  years  of  its  existence  the  business  of  the  com-" 
mittee  was  done  by  resolutions  passed  at  a  board  consist- 
ing of  such  members  as  chose  to  attend,  the  average  (ac- 
cording to  the  minute  books  from  1786  to  1797)  being 
only  seven  or  eight.  As  the  president  was  the  only  mem- 
ber who  was  regularly  present,  and  as  he  was  competent 
to  act  alone  (the  order  in  council  by  which  the  committee 
was  appointed  not  requiring  a  quorum),  the  business  was 
gradually  drawn  into  the  president's  hands,  more  es- 
pecially as  the  board's  administrative  functions  began  to 
arise.  Thus,  while  the  board  of  trade  presents  outwardly 
the  appearance  of  a  permanent  staff,  under  a  secretary, 
there  exists  behind  it  a  dormant  committee  of  the  privy 
council,  which,  while  seldom  heard  of,  is  nevertheless 
recognized. 

It  was  not  until  1840  that  it  was  intrusted  with  any 
great  administrative  powers,  when,  by  3  and  4  Victoria 
(c.  97),  the  duty  of  settling  and  approving  the  by-laws 
of  railways  was  imposed  upon  it.  From  that  date  the 
regulative  powers  have  been  increased.  The  president 
of  the  board  is  usually  a  member  of  the  cabinet.  The 
board  of  trade  has  become  an  administrative  and  regula- 
tive body,  the  duties  imposed  upon  it  being  so  numerous 

1  Order  in  council,  23d  August.  1786. 


GREAT  BRITAIN.  415 

and  varied  that  seven  departments  have  been  created  to 
perform  them,  namely: 

I.  The  statistical  and  commercial  department,  which, 
in  addition  to  the  preparation  and  publication  of  com- 
mercial statistics,  advises  other  offices  when  requested, 
and  these  requests  have  in  late  years  been  more  frequent. 

II.  The  railway  department,  which,  besides  administer- 
ing railway  legislation,  performs  duties  not  obviously 
connected  with  locomotion,  such  as  the  control  of  various 
matters  connected  with  the  metropolitan  gas  companies, 
patents,    trade-marks,  etc.     The    joint-stock    companies 
registration  office x  is  under  this  department.    Annual  re- 
ports and  such  special  reports  as  may  be   ordered  by 
Parliament  are  compiled  by  the  staff. 

III.  The  marine  department. 

IV.  The  harbor  department. 

V.  The  finance  department.    The  bankruptcy  acts,  1883 
i:nd  1890,  and  the  companies  (winding-up)  act  1890,  have 
placed  the  money  produced  by  the  realization  of  the  as- 
sets of  bankrupts  and  joint-stock  companies  which  are  in 
compulsory  liquidation  under  the  control  of  the  board  of 
trade,  and    this    department  has    the    custody  of    these 
funds.2 

VI.  The  fisheries  department. 

VII.  The    bankruptcy     department.     The    companies 
(winding-up)  act  of  1890  applied  to  the  winding-up  of 
insolvent  companies  some  of  the  leading  principles  of 
bankruptcy  law,  namely,  that  of  the  official  custody  of 
the  assets  at  the  initial  stage  of  the  proceedings,  with 
liberty  to  the  creditors  and  contributories  of  the  com- 
pany to  later  substitute  their  own  liquidator.     The  act 
also  applied  to  winding-up  of  companies  another  prin- 
ciple, that  of  an  official  investigation  into  the  causes  of 
failure  and  the  conduct  of  those  responsible  for  the  trad- 
ing   and  financial    transactions  causing  the    insolvency. 
The  act  also  provided  for  a  public  examination  of  pro- 
moters, directors,  and  officers,  and  for  reports  similar  in 
some  respects  to  the  reports  upon  the  bankrupt's  conduct 
and  affairs  under  the  bankruptcy  acts. 

For  the  purpose  of  carrying  this  into  effect  official 
receivers  are  attached  to  the  courts  which  have  winding- 

1 25  and  26  Viet.,  c.  89,  companies  act,  1862  ;  63  and  64  Viet.,  c.  48, 
companies  act,  1900. 

2  Companies  (winding-up)  act,  53  and  54  Viet.,  c.  63,  1890  ;  companies 
act,  63  and  64  Viet.,  c.  48,  1900. 


416  LAWS  ON  TRUSTS  AND  MONOPOLIES. 

up  jurisdiction,  and  the  board  of  trade  is  intrusted  with 
power  of  control  over  the  accounts  and  proceedings  of 
liquidators  of  companies  similar  to  that  exercised  over 
trustees  in  bankruptcy.1 

1  Companies  (winding-up)  act,  53  and  54  Viet.,  c.  63,  1890;  companies 
act,  63  and  64  Viet.,  c.  48,  1900 ;  Chitty's  Digest  of  the  Laws  of  England  ; 
Encyclopedia  of  Laws  of  England,  2d  eel.,  vol.  II ;  companies  act  cited. 


BRITISH  EMPIRE. 

List  of  company  acts  of  the  British  Empire  from  1862  to  1907, 
showing  title  of  act  and  year  of  passage. 


Year 
of 


1862. 
1864. 
1867. 
1870. 

1877. 
1879. 
1880. 
1883. 


1897. 


1900. 
1907. 
1908. 
1908. 


1882. 
1895. 


1902. 
1904. 


Title  of  act. 


1897. 


1900. 
1901. 
1902. 


1897. 


UNITED  KINGDOM. 

Companies  act. 
Companies  seals  act. 
Companies  act. 

Joint    stock    companies    arrange- 
ment act. 
Companies  act. 

Do. 

Do. 

Companies  (colonial  registers)  act. 
Companies  act. 

Preferential  payments   in   bank- 
ruptcy act. 

Companies  (memorandum  of  asso- 
ciation) act. 

Companies  (winding  up)  act. 
Directors'  liability  act. 
Companies  (winding  up)  act. 
Companies  act. 
Do. 
Do. 
Do. 

Companies     (consolidation)     act 
(Dec.  21,  1908). 

INDIA. 

Indian  companies  act. 

Indian  companies  (memorandum 

of  association)  act,  amending  act 

of  1882. 

DOMINION  OF  CANADA. 

(As  distinguished  from  the  Cana- 
dian Provinces.) 
Companies  act. 
Do. 

Companies  may  be  incorpo- 
rated either  under  Dominion 
laws  or  those  of  the  Provinces, 
but  the  insolvency  of  companies 
is  a  matter  within  the  exclusive 
jurisdiction  of  the  Dominion. 

CANADA. 

Ontario. 

Ontario  companies  act. 
Ontario   companies   act  (amend- 
ment). 

Do. 

Do. 

Do. 

Do. 

Ontario  mining  companies   incor- 
poration act. 

An  act,  chap.  215  of  laws  of  18  7. 
Directors'  liability  act. 


Year 
of 


1897.. 
1897.. 
1902.. 
1900.. 
1901.. 


1895. 
1898. 
1902. 
1904. 
1904. 


1900. 
1900. 
1900. 
1902. 

1903. 
1904. 
1905. 
1906. 
1900. 

1903. 
1904. 


1904.. 
1906.. 


1903.. 
1903.. 


1905.. 


1902.. 
1904.. 


1905.. 
1906.. 


Title  of  act. 


c  AN  A  DA— continued . 
Ontario— Continued. 

Chaps.  217,  219,  220  of  laws  of  1897 

(3  acts). 
Joint  stock  companies  winding  up 

act. 
Joint  stock  companies  winding  up 

act  (amendment). 
Act   respecting   the'  licensing   of 

extraprovincial  corporations. 
Do. 

Quebec. 

Revised  Statutes  (arts.  4694  to  4793). 
Amendment. 

Do. 

Do. 

Do. 
Extraprovincial  corporations. 

Nova  Scotia. 

Nova  Scotia  companies  act. 
Companies  (winding  up)  act. 
Chap.  130,  Revised  Statutes. 
Companies'  act  of  1900  (amend- 
ment). 

Do. 

Do. 

Do. 

Do. 

Chap.  127,  relating  to  foreign  cor- 
porations. 
Amendment. 

Do. 

New  Brunswick. 

New  Brunswick  joint  stock  com- 
panies act. 

New  Brunswick  joint  stock  com- 
panies' act  (amendment). 
Do. 

Consolidated  Statutes,  chap.  86. 

Companies  winding-up  act. 

Extraprovincial   corporations,    li- 
censing of. 

Extraprovincial   corporations,    li- 
censing of  (amendment). 

Manitoba. 

Manitoba  joint   stock   companies 

act. 
Manitoba  joint   stock   companies 

act  (amendment). 

Do. 
Manitoba  joint  stock  companies 

act  (amendment)  (2). 


16491—13- 


-27 


417 


418 


LAWS   ON    TRUSTS   AND   MONOPOLIES. 


Year 

Year 

of 
pas- 

Title of  act. 

pal-                        Title  of  act. 

sage. 

sage. 

CAN  ADA—  continued  . 

COMMONWEALTH  OF  AUSTRALIA— 

continued. 

British  Columbia—  Continued. 

Tasmania  —  Continued. 

1899.. 

Joint  stock  companies  winding-up 
act. 

1896.. 

Companies  act  (amendment). 

1902.. 
1903.. 

Chap.  29,  laws  of  1902. 
Foreign  corporation  act. 

1898.. 
1901.. 

Foreign  companies  act,  No.  2. 
Foreign    companies    amendment 

act. 

Province  of  Northwest  Territories. 

1902.. 

Do. 

1905.. 

Do. 

1901.. 
1903.. 
1903.. 
1903.. 

Companies  ordinance. 
Foreign  companies  ordinance. 
Companies  winding-up  ordinance. 
Trust  companies  ordinance. 

1884.. 
1895.  . 
1896.. 
1900.. 

Mining  companies  act. 
Mining  companies  (foreign)  act. 
Mining  companies  amendment  act. 
Do. 

British  Columbia. 

Western  Australia. 

1897.. 

Companies    act    (a  consolidation 

1893.. 

Companies    act    (a    consolidation 
act). 

1898.. 

Companies  act  (amendment). 

1896.. 

Companies  act  amendment  act. 

1899.. 

Do. 

1897.. 

Do. 

1900.. 

Do. 

1898.. 

Do. 

1901.. 

Do. 

1899.. 

Companies  duty  act. 

1902.. 
1904.. 

Companies  act  (amendment)  (2). 
Companies  act  (amendment). 

1899.. 
1902.. 

Companies  act  amendment  act. 
Do. 

1905.. 

60. 

1906.. 

Do. 

New  Zealand. 

1898.- 
1903.. 
1898.. 

Mortgage  debenture  act  . 
Companies  winding-up  act. 
Companies  act  (since  repealed). 

1903.- 
1904.. 

Companies    act    (a   consolidation 
act). 
Mining  companies  act  . 

COMMONWEALTH  OF  AUSTRALIA. 

SOUTH  AFRICA. 

New  South   Wales. 

Cape  of  Good  Hope. 

1899.. 

Companies    act   (a    consolidation 

act). 

1892.. 

Companies  act. 

1900.. 
1906.. 

Companies  act  (amendment). 
Do. 

1895.. 
1906.. 

Company  debenture  act. 
Companies  act  amendment  act. 

1901.. 

Companies  (death  duties)  act. 

Natal. 

Victoria. 

1864.. 

Joint    stock    companies    limited 

1890.. 

Companies    act    (a    consolidation 

liability  law. 

act). 

1865.  . 

Law  No.  18. 

1892.. 
1895.. 

Companies  act  amendment  act. 
Companies  documents  act. 

1866.. 
1893.. 

Winding-up  law. 
Joint  stock  companies  amendment 

1896.. 
1896.. 
1897.. 

Companies  act  amendment  act  . 
Companies  act. 
Companies    act    amendment    act 

1896.. 
1899.  . 

law. 
Law  No.  3. 
Share-pledge  act. 

(September). 

1897.. 

Companies    act    amendment    act 

Transvaal. 

(December). 

1900.. 

Companies  act. 

1874.. 

Law  No.  5,  enacted  by  the  Volks- 

1903.. 

Do. 

raad,  resolution  dated  Oct.  31, 

1874. 

South  Australia. 

1874.. 

Amendment,  Nov.  18,  1874. 

1890.. 

Amendment,  May  10,  1890. 

1892.. 

Companies    act    (a   consolidation 

1892.. 

Amendment,  May  24,  1892. 

act). 

1892.. 

Amendment      by     executive 

1893.. 

Companies  amendment  act. 

council  Dec.  11,  1892,  by  au- 
thoritv  of  Volksraad. 

Queensland. 

1894.. 

Volksraad  resolution,  June  2,  1894. 

1894.. 

Volksraad  resolution,  May  30,  1894. 

1863.. 

Companies  act. 

1904.. 

Ordinance  No.  30. 

1886.. 

British  companies  act. 

1886.. 
1889.. 
1890.. 

Mining  companies  act. 
Companies  act  amendment  act. 
Dividend  duty  act. 

1891.. 

Orange  River  Colony. 
Statute  law  of  Orange  Free  State 

1891.. 

Companies  act. 

chap.  100. 

1892.. 

Companies  (winding  up)  act. 

1892.. 

Law  No.  2. 

1893.. 

Companies  act. 

1892.. 

Law  No.  4. 

1894.. 

Reconstructed  companies  act. 

1904.. 

Companies  amendment  ordinance 

1895.. 

Foreign  companies  act. 

No.  24. 

1896.. 

Do. 

• 

Tasmania. 

British  South  Africa  Co. 

1869.  . 

Companies  act. 

1895.. 

Ordinance  No.  2. 

1895.  . 

Companies  act  (amendment). 

JAPAN. 

If  a  company  does  acts  contrary  to  the  public  welfare 
or  to  good  morals,  the  court  may  on  the  application  of 
a  public  procurator  or  of  its  own  motion  order  its  disso- 
lution. (Commercial  Code  of  Japan,  Book  11,  Chap.  1, 
Sec.  48,  Loenholm.) 

419 


NEW  ZEALAND. 

ACTS  FOB  THE  REPRESSION  OF  MONOPOLIES  IN  TRADE 
OR  COMMERCE. 

[New  Zealand  Statutes,  1,  Geo.  V,  1910,  No.  32.] 

AN  ACT  For  the  repression  of  monopolies  in  trade  or  commerce.      Title. 

,  [  N  o  v  .  2  1, 

Be  it  enacted  ~by  the  General  Assembly  of  New  Zealand 
in  Parliament  assembled,  and  by  the  authority  of  the 
same,  as  follows: 

1.  This  act  may  be  cited  as  the  "  commercial  trusts  act,     short     title 
1910,"  and  shall  come  into  operation  on  the  1st  day  of  Kent. 
January,  1911. 

2.  (1)   In  this  act,  unless  the  contrary  intention  ap-    interp re- 
pears,  "  commercial  trust  "  means  any  association  or  com- 
bination (whether  incorporated  or  not)  of  any  number 

of  persons,  established  either  before  or  after  the  com- 
mencement of  this  act,  and  either  in  New  Zealand  or 
elsewhere,  and  (a)  having  as  its  object,  or  as  one  of  its 
objects,  that  of  (1)  controlling,  determining,  or  influenc- 
ing the  supply  or  demand  or  price  of  any  goods  in  New 
Zealand  or  any  part  thereof  or  elsewhere,  or  that  of  (2) 
creating  or  maintaining  in  New  Zealand  or  any  part 
thereof  or  elsewhere  a  monopoly,  whether  complete  or 
partial,  in  the  supply  or  demand  of  any  goods;  or  (5) 
acting  in  New  Zealand  or  elsewhere  with  any  such  object 
as  aforesaid ;  and  includes  any  firm  or  incorporated  com- 
pany having  any  such  object,  or  acting  as  aforesaid. 

"Association  "  includes  the  union  of  any  number  of 
persons  by  or  under  any  agreement  or  trust,  whether 
temporary  or  permanent,  and  whether  legally  valid  or 
not,  and  whether  including  any  scheme  of  organization  or 
common  management  or  control  or  not. 

"  Member  of  a  commercial  trust "  means  any  of  the 
constituent  persons  of  that  trust,  or  any  agent  of  that 
trust,  and,  where  any  such  constituent  person  or  agent  is 
a  corporation,  firm,  or  association,  includes  every  mem- 
ber or  agent  of  that  corporation,  firm,  or  association. 

421 


422  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

"  Person  "  includes  a  corporation,  and  as  used  in  the 
foregoing  definitions  of  "  commercial  trust,"  "  associa- 
tion," and  "  member  of  a  commercial  trust  "  includes  also 
a  firm  of  partners  or  any  other  association  or  combina- 
tion of  persons. 
Application  (2)  Nothing  in  this  act  shall  apply  to  any  goods  other 

than  those  specified  in  the  schedule  hereto, 
niegai    con-      3    Every   person  commits   an   offense   who,   either   as 

cessions  in  con-  J 

exclusive11  de-'l*  Principal  or  agent,  in  respect  of  dealings  in  any  goods, 
ins-  gives,  offers,  or  agrees  to  give  to  any  other  person  any  re- 

bate, refund,  discount,  concession,  allowance,  reward,  or 
other  valuable  consideration  for  the  reason  or  upon  the 
express  or  implied  condition  that  the  latter  person — 

(a)  Deals   or  has   dealt   or  will   deal,   or   intends  or 
undertakes  or  has  undertaken  or  will  undertake  to  deal, 
exclusively  or  principally,  or  to  such  an  extent  as  amounts 
to  exclusive  or  principal  dealing,  with  any  person  or  class 
of  persons,  either  in  relation  to  any  particular  goods  or 
generally;  or 

(b)  Does  not  deal  or  has  not  dealt  or  will  not  deal, 
or  intends  or  undertakes  or  has  undertaken  or  will  under- 
take not  to  deal,  with  any  person  or  class  of  persons, 
either  in  relation  to  any  particular  goods  or  generally ;  or 

(c)  Restricts    or    has    restricted    or    will    restrict,    or 
intends  or  undertakes  or  has  undertaken  or  will  under- 
take to  restrict,  his  dealing  with  any  person  or  class  of 
persons,  either  in  relation  to   any   particular  goods  or 
generally;  or 

(d)  Is  or  becomes  or  has  been,  or  has  undertaken  or 
will   undertake  to  become,  a  member  of   a   commercial 
trust;  or 

(e)  Acts  or  has  acted  or  will  act,  or  intends  or  under- 
takes or  has   undertaken  or  will   undertake   to   act,  in 
obedience  to  or  in  conformity  with  the  determinations, 
directions,   suggestions,   or   requests   of   any   commercial 
trust  with  respect  to  the  sale,  purchase,  or  supply  of  any 
goods. 

niegai  re-  4.  Every  person  commits  an  offense  who.  either  as 
l!>  principal  or  agent,  refuses,  either  absolutely  or  except 
upon  disadvantageous  or  relatively  disadvantageous  con- 
ditions, to  sell  or  supply  to  any  other  person,  or  to  pur- 
chase from  any  other  person,  any  goods  for  the  reason 
that  the  latter  person— 

(a)   Deals  or  has  dealt  or  will  deal,  or  intends  to  deal, 
or  has  not  undertaken  or  will  not  undertake  not  to  deal. 


NEW  ZEALAND.  423 

with  any  person  or  class  of  persons,  either  in  relation  to 
any  particular  goods  or  generally ;  or 

(6)  Is  not  or  has  not  been,  or  will  not  become  or  under- 
take to  become  or  has  not  undertaken  to  become,  a  mem- 
ber of  a  commercial  trust;  or 

(<?)  Does  not  act  or  has  not  acted  or  will  not  act,  or 
does  not  intend  to  act,  or  has  not  undertaken  or  will  not 
undertake  to  act,  in  obedience  to  or  in  conformity  with 
the  determinations,  directions,  suggestions,  or  requests  of 
any  commercial  trust  with  respect  to  the  sale,  purchase, 
or  supply  of  any  goods. 

5.  Any  person  who  conspires  with  any  other  person  to ni™£§£1     mo~ 
monopolize  wholly  or  partially  the  demand  or  supply  in 

New  Zealand  or  any  part  thereof  of  any  goods,  or  to  con- 
trol wholly  or  partially  the  demand  or  supply  or  price  in 
Xew  Zealand  or  any  part  thereof  of  any  goods,  is  guilty 
cf  an  offense  if  such  monopoly  or  control  is  of  such  a 
nature  as  to  be  contrary  to  the  public  interest. 

6.  (1)   Every  person  commits  an  offense  who,  either  as     Sales    ** 

J    J  prices  fixed  by 

principal  or  agent,  sells  or  supplies,  or  offers  for  sale  or;'  commercial 
supply,  any  goods  at  a  price  which  is  unreasonably  high, 
if  that  price  has  been  in  any  manner  directly  or  indirectly 
determined,  controlled,  or  influenced  by  any  commercial 
trust  of  which  that  person  or  his  principal  (if  any)  is  or 
has  been  a  member. 

(2)  Every  person  commits  an  offense  who,  in  obedience 
to  or  in  consequence  of  or  in  conformity  with  any  deter- 
mination, direction,  suggestion,  or  request  of  any  com- 
mercial trust,  whether  he  is  a  member  of  that  trust  or  not. 
sells  or  supplies,  or  offers  for  sale  or  supply,  any  goods, 
whether  as  principal  or  agent,  at  a  price  which  is  unrea- 
sonably high. 

7.  (1)   If  any  commercial  trust,  whether  as  principal     * (aomeraserc Jai 
or  agent,  sells  or  supplies,  or  offers  for  sale  or  supply.  t:-ust. 

any  goods  at  a  price  which  is  unreasonably  high,  every 
person  who  is  then  a  member  of  that  trust  shall  be  deemed 
to  have  committed  an  offense  against  this  act. 

(2)  If  in  any  such  case  the  commercial  trust  is  a  cor- 
poration, it  shall  itself  be  guilty  of  an  offense  against 
this  act ;  but  the  liability  of  the  trust  shall  not  exclude 
or  affect  the  liability  of  its  members  under  the  last  pre- 
ceding subsection. 

8.  For  the  purposes  of  this  act  the  price  of  any  goods  'n  )WJ161J  O 
shall  be  deemed  to  be  unreasonably  high  if  it  produces 

or  is  calculated  to  produce  more  than  a  fair  and  reason- 


424  LAWS    ON    TRUSTS   AND   MONOPOLIES. 

able  rate  of  commercial  profit  to  the  person  selling  or 
supplying,  or  offering  to  sell  or  supply,  those  goods,  or 
to  his  principal,  or  to  any  commercial  trust  of  which  that 
person  or  his  principal  is  a  member,  or  to  any  member  of 
any  such  commercial  trust. 

abeufif  a"?     ^'  -^very  Person  wno  aids,  abets,  counsels,  or  procures, 
fenses   against  or  is  in  any  way  knowingly  concerned  in  the  commission 

this  act.  J          J  .  J  i         -i    • 

of,  an  offense  against  this  act,  or  the  doing  of  any  act 
outside  New  Zealand  which  would  if  done  in  New  Zea- 
land be  an  offense  against  this  act,  shall  be  deemed  to 
have  committed  that  offense. 

Penalty.  io.   (1)   Every  person  who  commits  an  offense  against 

this  act  shall  be  liable  to  a  penalty  of  £500. 

(2)  If  two  or  more  persons  are  responsible  for  the  same 
offense  against  this  act,  each  of  those  persons  shall  be 
severally  liable  to  a  penalty  of  £500,  and  the  liability  of 
each  of  them  shall  be  independent  of  the  liability  of  the 
others. 

coverage68  by     ^1>  Every  such  penalty  shall  consttute  a  debt  due  by 
supr°emeincom^ tne  offender  to  His  Majesty  the  King,  and  shall  be  re- 
coverable, together  with  costs  of  suit,  by  a  civil  action  in 
the  supreme  court,  instituted  by  the  attorney  general  for 
and  in  the  name  of  His  Majesty. 

s  u  p  r  e  in  o      12.  In  any  such  action  the  supreme  court  may  remit 
duce  penalty,    such  part  of  the  aforesaid  penalty  of  £500  as  it  thinks 
fit,  and  may  give  judgment  for  the  residue  of  the  penalty 
only. 

against"  repetf-      I**.  In  any  such  action  the  supreme  court  may,  in  addi- 
ua^cVof^of- ti°n  to  the  said  penalty,  grant  an  injunction  against  the 
continuance  or  repetition  of  the  offense;  but  no  such  in- 
junction shall  be  granted  by  way  of  interlocutory  pro- 
ceedings before  final  judgment  in  the  action. 

ar8esdei  a n°d      -^'   (^)   ^n  an^  suc^  acti°n  claims  may  be  joined  for 
tioi?es   °f   ac  the  recovery  of  penalties  in  respect  of  several  offenses, 
whether  of  the  same  or  different  kinds. 

(2)  In  any  such  action  several  persons  may  be  joined 
as  defendants,  whether  in  respect  of  the  same  or  of  dif- 
ferent offenses,  and  whether  those  offenses  are  committed 
by  the  same  or  by  different  parties;  and  in  any  such  case 
separate  judgments  may  be  given  in  respect  of  each  de- 
fendant so  joined. 

(3)  In  the  case  of  any  such  joinder  of  causes  of  action 
or  of  parties  the  supreme  court  may  give  such  directions 
as  it  thinks  fit  for  the  separate  trial  of  any  cause  of 
action  against  any  defendant. 


STEW   ZEALAND. 


425 


15.   (1)   In  any  action  for  the  recovery  of  a  penalty     Evidence, 
or  for  an  injunction  under  this  act  the  supreme  court 
may,  in  proof  of  any  fact  in  issue,  admit  and  accept  as 
sufficient  such  evidence  as  it  thinks  fit,  whether  such  evi- 
dence is  legally  admissible  in  other  proceedings  or  not. 

(2)  In  any  action  for  the  recovery  of  a  penalty  or  for 
an  injunction  under  this  act,  no  person,  whether  a  party 
to  the  action  or  not,  shall  be  excused  from  answering  any 
question  put  to  him  by  interrogatory  or  otherwise,  or 
from  producing  or  making  discovery  of  any  document, 
on  the  ground  that  the  answer  to  the  question  or  the  pro- 
duction or  discovery  of  the  document  would  tend  to  crim- 
inate him  in  respect  of  any  offense  against  this  act. 

SCHEDULE.  Schedule. 

GOODS   TO   WHICH   THIS   ACT  APPLIES. 

Agricultural  implements. 

Coal. 

Meat. 

Fish. 

Flour,  oatmeal,  and  the  other  products  or  by-products  of  the 
milling  of  wheat  or  oats. 

Petroleum  or  other  mineral  oil  (including  kerosene,  naphtha, 
and  the  other  products  or  by-products  of  any  such  oil). 

Sugar. 

Tobacco   (including  cigars  and  cigarettes). 

PATENTS,   DESIGNS,   AND   TRADE-MARKS. 

[1908,  No.   140.] 

AN  ACT  To  consolidate  certain  enactments  of  the  general 
assembly  relating  to  patents  for  inventions  and  registration  of 
designs  and  of  trade-marks. 

COMPULSORY    LICENSES. 

28.  If  on  the  petition  of  any  person  interested  it  is  ^e?n^retl0  *™_ 
proved  to  the  governor  that  by  reason  of  the  default^ 
of  a  patentee  to  grant  licenses  on  reasonable  terms  (a)  ' 
the  patent  is  not  being  worked  in  New  Zealand;  or  (&) 
the  reasonable  requirements  of  the  public  with  respect 
to  the  invention  can  not  be  supplied;  or   (c)   any  per- 
son is  prevented  from  working  or  using  to  the  best  ad- 
vantage  an    invention    of    which    he    is   possessed,    the 
governor  may  order  the  patentee  to  grant  licenses  on 
such  terms  as  to  the  amount  of  royalties,  security  for 


>c  33J 


426  LAWS   ON    TRUSTS   AND   MONOPOLIES. 

payment,  or  otherwise,  as  the  governor,  having  regard 
to  the  nature  of  the  invention  and  the  circumstances  of 
the  case,  deems  just,  and  any  such  order  may  be  enforced 
by  mandamus. 

(Xew  Zealand  Consolidation  Statutes,  Vol.  IV,  Ap- 
pendix D.  act  140,  sec.  28.) 

MONOPOLY   PREVENTION    ACT. 

[1908,  No.  122.] 

AX    ACT    To    consolidate    certain    enactments    of    the    general 
assembly  relating  to  the  prevention  of  certain  monopolies. 

Be  it  enacted  by  the  general  assembly  of  New  Zealand 
in  parliament  assembled,  and  Inj  the  authority  of  the 
same,  as  follows: 

Short  title.  l.  (l)  The  short  title  of  this  act  is  ''The  monopoly 
prevention  act,  1908." 

Enactments      (2)  This  act  is  a  consolidation  of  the  enactments  men- 

consolidated.        .... 

tioned  in  the  first  schedule  hereto,  and  with  respect  to 
those  enactments  the  following  provisions  shall  apply : 
Savings.  (#)    All  appointments,  regulations,  orders  in  council^ 

orders,  reports,  recommendations,  instruments,  and  gen- 
erally all  acts  of  authority  which  originated  under  any 
of  the  said  enactments,  and  are  subsisting  or  in  force  on 
the  coming  into  operation  of  this  act,  shall  enure  for  the 
purposes  of  this  act  as  fully  and  effectually  as  if  they 
had  originated  under  the  corresponding  provisions  of 
this  act,  and  accordingly  shall  Avhere  necessary  be  deemed 
to  have  so  originated. 

(b)  All  matters  and  proceedings  commenced  under  any 
such  enactment,  and  pending  or  in  progress  on  the  com- 
ing into  operation  of  this  act,  may  be  continued,  com- 
pleted, and  enforced  under  this  act. 

(3)  This  act  is  divided  into  parts,  as  folloAvs: 
Part  I.  Agricultural  implements.     (Sees.  2  to  13.) 
Part  II.  Flour  and  other  products.     (Sees.  14  to  24.) 

PAKT  I. — Agrwultural  implements. 

interpreta-     2.  In  this  part  of  this  act,  if  not  inconsistent  with  the 
NO.  58,  sec.  ±)' context,  "  implements"  means  the  implements,  machines, 
and  appliances  specified  in  the  second  schedule  hereto; 
"  minister  "  means  the  minister  of  customs. 


NEW    ZEALAND.  427 


3.  (1)  The  minister  shall  cause  to  be  compiled  a  state-  ^ 

merit  showing  in  the  case  of  each  implement  its  descrip-  <n>ici.,  sec.  3. 
tion,  the  nature  and  quality  of  the  materials  used  in  its 
construction,  and  the  price  then  current. 

(2)   Such  statement  shall  be  published  in  the  Gazette. 

4.  On  complaint  to  the  minister  by  any  two  or  more    Complaint  of 

J          "  unfair     compe- 

manufacturers  in  New  Zealand  of  any  implement  that  the*j{tjpn.     (ibid., 

price  of  any  implement  on  importation  into  New  Zealand 

lias  been  materially  reduced,  and  that  competition  on 

unfair  lines  is  being  carried  on  by  importers  of  imple- 

ments from  foreign  countries,  he  shall  summon  the  board 

IK  reinafter  constituted  and  refer  the  matter  of  such  com- 

plaint to  it  for  report. 

r>.   (1)   There  is  hereby  constituted  a  board  called  "  The  hlfe°dard  ^g1; 
agricultural  implement  inquiry  board,"  consisting  of— 

The  judge  of  the  court  of  arbitration,  who  shall  be 
chairman  ; 

The  president  for  the  time  being  of  the  Farmers' 
Union; 

The  president  of  the  Industrial  Association  of  Canter- 
bury ; 

Some  person  appointed  by  the  governor  on  the  recom- 
mendation of  the  trades  and  labor  councils;  and 

Some  person  appointed  by  the  governor  on  the  recom- 
mendation of  the  agricultural  and  pastoral  associations. 

(2)  The  members  of  the  board  appointed  by  the  gov- 
ci-iK  r  shall  be  appointed  in  the  same  manner  as  members 
(•f  the  court  of  arbitration   (other  than  the  judge)   are 
appointed. 

(3)  The  board  and  its  members  as  constituted  under 
"  The  agricultural-implement  manufacture,  importation. 
and  sale  act,  1905,"  and  subsisting  on  the  coming  into 
operation  of  this  act,  shall  be  deemed  to  be  the  board  and 
its  members  under  this  act, 

6.   (1)   The  board  on  being  summoned  by  the  minister     inquiry     by 

»     4i   •  •  •!  Ti-ii  .,  ,      .  board.       (Ibid., 

shall  inquire  with  as  little  delay  as  possible  into  the  mat-  ^.    6;    1007, 
ter  referred  to  it  in  such  manner  as  it  thinks  fit,  and  for 
the  purposes  of  such  inquiry  shall  have  and  may  exercise 
jill  the  powers  that  the  court  of  arbitration  has  in  respect 
of  industrial  disputes. 

(2)  The  board  may  exercise  its  powers  and  functions 
at  any  meeting  at  which  the  judge  of  the  court  of  arbitra- 
tion and  at  least  three  other  members  of  the  board  are 
present. 


428  LAWS   ON    TRUSTS  AND  MONOPOLIES. 

(3)  The  board  shall  report  in  writing  to  the  minister 
the  result  of  its  inquiry,  and  shall  state  whether  or  not 
in  its  opinion  the  price  of  any  implement  imported  into 
New  Zealand  has  been  materially  reduced  below  that 
specified  in  the  statement  mentioned  in  section  3  hereof, 
^nd  may  recommend  that  relief  be  granted  in  the  manner 
hereinafter  appearing. 

imposedTfaNew      ^'   (*)   ^  at    an^  tmie  ^    manufacturers  of    imple- 

factu?OTsma"e"  ments  in  New  Zealand  agree  to  reduce  the  price  of  the 

al905e  NPoicS'  wn°le    °^    tne    implements    mentioned    in    the    second 

sec.  7.)  schedule  hereto,  or  not  less  than  a  moiety  thereof,  to  at 

least  20  per  cent  below  that  specified  in  the  statement 

mentioned  in  section  3  hereof,  and  notify  the  minister 

of  such  agreement,  he  shall  summon  the  board  and  refer 

the  matter  to  it  for  report. 

(2)  The  board  shall  in  like  manner  make  inquiry  into 
the  matter,  and  report  in  writing  to  the  minister  whether 
or  not  in  its  opinion  it  is  advisable  for  the  protection  of 
the  industry  in  New  Zealand  that  relief  be  granted  as 
hereinafter  mentioned. 
Power  to  g.  (1)  In  any  case  where  the  board  recommends  that 

grant  bonus.  v    '  * 

^1905,  NO.  ss.  relief  be  granted  it  shall  be  lawful  for  the  minister  to 
grant  to  the  manufacturers  of  implements  in  New  Zea- 
land such  bonus,  not  exceeding  33  per  cent,  as  he  deems 
necessary  to  enable,  manufacturers  to  compete  with  im- 
porters of  such  implements. 

(2)  The  right  to  such  bonus  shall  be  subject  to  such 
terms  and  conditions  as  the  governor  in  council  thinks 
fit  to  impose. 
implements      9.  For  the  purposes  of  this  act  implements  manufac- 

manufactured  .  "      * 

in  United  King-  tured  in  the  United  Kingdom  shall  be  deemed  to  be  manu- 

o  o  in  .      (Ibid.. 

sec.  9 ;  1907.  f  actured  in  New  Zealand,  and  the  importers  of  such  im- 
plements shall  be  deemed  to  be  manufacturers  thereof  in 
New  Zealand. 

re£ndwduty  In      10.   (1)   Whenever  it  is  proved  to  the  satisfaction  of 

Jfa/JIn   (ijfo£  the  collector  that  duty-paid  materials  have  been  used  in 

NO.  58,  sec.  io.)  fae  construction  of  any  implement,  he  shall  refund  to 

the  manufacturer  of  such  implement  the  amount  of  duty 

paid  on  the  materials  so  used. 

(2)  For  the  purposes  of  this  section  "  materials  "  in- 
cludes such  parts,  of  implements  as  can  not  advantag*1- 
ously  be  manufactured  in  New  Zealand. 

boVr^to*  be  H-  EverJ  report  of  the  board  shall  be  laid  before 
^•fre1I;taementt0  Parliament  within  10  days  after  its  presentation  to  the 
sec9°57)  N°'  8°'  minister  of  customs  if  Parliament  is  then  sitting,  and  if 


NEW  ZEALAND.  429 

not,  then  within  10  days  after  the  commencement  of  the 
uext  ensuing  session. 

12.  (1)  This  part  of  this  act  shall  be  deemed  to  be  in-  r^  in(c?SJg; 
corporated  with  "  the  customs  law  act,  1908."  £»;  Vl8^n}f: 

(2)  The  governor  may  from  time  to  time,  by  order  in  *J^{IA    il)id  ' 
council    gazetted,   make    regulations   necessary    for   the 
carrying  out  of  this  part  of  this  act. 

13.  This  part  of  this  act  shall  continue  in  operation  till  this"™"??   of 
the  31st  day  of  December,  1908,  on  which  day  it  shall  be  N.!;  2iYm?§; 
deemed  to  be  repealed.  s™±)'N°' 

PART  II. — Flour  and  other  products. 

14.  In  this  part  of  this  act  "the  court"  means  the teTti^ e r(5£0V 
court  of  arbitration  under  "The  industrial  conciliation No-  34' sec-  -•> 
isnd  arbitration  act,  1908." 

15.  Notwithstanding  anything  in  "  The  customs  duties 
act,  1908,"  it  shall  be  lawful  for  the  governor,  at  any  "{f 
time  and  from  time  to  time,  on  the  recommendation  of 
the  court,  made  in  accordance  with  this  part  of  this  act, 

to  declare,  by  order  in  council  gazetted,  that  on  and  after 
a  date  to  be  specified  in  such  order  in  council  flour  im- 
ported into  New  Zealand  shall  be  admitted  free  of  all 
duties  of  customs,  and  so  long  as  any  such  order  in 
council  remains  in  force  flour  shall  be  exempt  from  such 
duties  accordingly. 

16.  Any  such  order  in  council  may  be  revoked  by  the  ,.0Siei? 
governor  at  any  time  as  from  a  day  to  be  specified  in  the  I,1" 
order  in  council  revoking  the  same,  not  being  earlier  than  ( ' 
three  months  from  the  gazetting  of  the  last-mentioned 
order  in  council. 

17.  The  court  may  from  time  to  time,  at  the  direction  in(qiS;ertasmtJ 
of  the  governor,  make  an  inquiry  as  to  whether  the  whole-  ^§^  °x0flo"J' 
sale  market  price  of  flour  in  New  Zealand  is  unreasonably  Pec-  5>) 
high,  and  if  on  such  inquiry  the  court  finds  that  such 

price  is,  or  has  at  any  time  since  the  receipt  of  such 
direction  from  the  governor  been,  unreasonably  high,  the 
court  shall  recommend  the  governor  to  exercise  the 
powers  conferred  on  him  by  section  15  hereof. 

18.  For  the  purposes  of  such  inquiry  the  price  of  flour  V^eof01al™r 
shall  be  deemed  to  be  unreasonably  high—  ('bid.,  sec-  6-> 

(a)  If  the  average  price  of  flour  in  New  Zealand  is, 
relatively  to  the  price  of  wheat  in  New  Zealand,  higher 
than  the  average  price  of  flour  in  Australia  relatively  to 
the  average  price  of  wheat  in  Australia,  unless  in  the 


430  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

opinion  of  the  court  the  additional  price  in  New  Zealand 
is  justified  by  additional  cost  of  production;  or 

(b)  If  the  average  price  of  wheat  in  New  Zealand  has, 
by  reason  of  any  combination  among  the  holders  of 
stocks  of  wheat,  or  by  reason  of  any  complete  or  partial 
monopoly  established  by  any  such  holder,  been  raised 
above  the  price  which  would  be  determined  by  unre- 
stricted competition. 

Sees,   is   to      19.   (1)   The  provisions  of  sections  15  to  17  hereof  shall 
wheat  ap?ibid"  also  apply  to  wheat  in  the  same  manner  as  to  flour. 

(2)  For  the  purpose  of  any  inquiry  by  the  court  under 
the  authority  of  this  part  of  this  act  the  price  of  wheat 
shall  be  deemed  to  be  unreasonably  high  if  the  average 
wholesale  price  in  New  Zealand  has,  by  reason  of  any 
combination  among  the  holders  of  stocks,  or  by  reason  of 
any  complete  or  partial  monopoly  established  by  any  such 
holder,  been  raised  above  the  price  which  would  be  deter- 
mined by  unrestricted  competition. 

sees.   15   i<>      20.   (1)   The  provisions  of  sections  15  to  17  hereof  shall 

17  to  apply  to  v     '  .        ,  a 

potatoes,  also  applv  to  potatoes  in  the  san  e  manner  as  to  flour. 

(Ibid..  sec.  S.)  ^  *  L  .          .        .         .  , 

(2)  Por  the  purpose  of  any  inquiry  by  the  court  under 
the  authority  of  this  part  of  this  act  the  price  of  potatoes 
shall  be  deemed  to  be  unreasonably  high— 

(a)  If  the  average  wholesale  price  in  New   Zealand 
exceeds  £7  per  ton  ;  or 

(b)  If  the  average  wholesale  price   in   New  Zealand 
has,  by  reason  of  any  combination  among  the  holders  of 
stocks  of  potatoes,  or  by  reason  of  any  complete  or  partial 
monopoly  established  by  any  such  holder,  been  raised 
above  the  price  which  would  be  determined  by  unre- 
stricted competition. 

ag?  0pHceaVde':  21.  (1)  The  average  price  in  New  Zealand  of  any  of 
*iebird.?sec.ei?-)  tne  aforesaid  articles  shall  be  determined  by  the  court 
for  the  purposes  of  this  part  of  this  act,  by  reference 
to  the  ordinary  market  price  for  the  time  being  in  Inver- 
cargill,  Dunedin,  Oamaru,  Timaru,  Christchurch,  Wel- 
lington, and  Auckland. 

(2)   The  average  price  in  Australia  of  any  of  the  afore- 

said articles  shall  be  likewise  determined  by  reference  to 

the  ordinary  market  price  for  the  time  being  in  Adelaide, 

Sydney,  and  Melbourne. 

Court    to 

have  powers  of 

°^  ^S  Pai*t  °^  this  act,  the  court  shall  be  deemed  to  be 
a  commission  within  "  the  commissions  of  inquiry  act. 
1908,"  and  shall  have  all  the  powers  conferred  upon  com- 


Court    to      22.    (1)   In  making  any  inquiry  under  the  authority 

J  .  J 


NEW   ZEALAND.  431 

missioners  by  that  act,  and  shall  be  subject  to  all  the 
provisions  of  that  act  accordingly. 

(2)  In  making  any  such  inquiry  the  court  may  receive 
and  act  on  any  evidence  which  it  thinks  fit,  whether  the 
same  is  legally  admissible  in  a  court  of  law  or  not. 

23.  (1)   For  the  purposes  of  this  part  of  this  act  there  t.i^e  p^esenta- 
shall  be  added  to  the  court  one  additional  member  thereof, cultural    and 

'  pastoral    socie- 

to  be  appointed  bv  the  governor  from  time  to  time  in  the  ti<*s    to   be   a 

;  „  member  of  the 

case  of  any  inquiry  under  this  part  of  this  act,  on  the  court.     (i»07, 

J     .     <        J  ...  No.  .U.  sec.ll.) 

recommendation  of  a  majority  of  the  societies  incor- 
porated under  "  the  agricultural  and  pastoral  societies 
act,  1908." 

(2)  The  member  so  appointed  shall  be  deemed  to  be  a 
member  of  the  court  for  the  purpose  of  the  inquiry  in 
respect  of  which  he  was  so  appointed,  but  for  no  other 
purpose  whatsoever. 

(3)  The  recommendation  of  the  said  societies  shall  be 
made  in  such  manner  as  is  prescribed  by  regulations  made 
by  the  governor  in  council. 

(4)  If  the  said  societies  fail  to  make  any  recommenda- 
tion in  accordance  with  such  regulations,  the  governor 
may  appoint  as  such  additional  member  of  the  court  any 
person  whom  he  thinks  fit. 

(5)  The  additional  member  (if  any)  appointed  under 
"  the  flour  and  other  products  monopoly  prevention  act, 
1907,"  and  in  office  on  the  coming  into  operation  of  this 
act,  shall  be  deemed  to  be  the  additional  member  under 
this  act. 

24.  (1)   In  the  case  of  any  inquiry  under  this  part  of    ,  '.O101'11™' 

v     '  .  i         .  I  ihici..  sec.  12.) 

this  act  the  court  may  exercise  its  powers  and  functions 
at  any  sitting  thereof  at  which  there  are  present  three 
members,  including  the  judge  of  the  court. 

(2)  In  the  case  of  any  division  of  opinion,  if  the  mem- 
bers of  the  court  who  are  present  are  equally  divided  in 
opinion,  the  decision  of  the  judge  shall  be  deemed  to  be 
the  decision  of  the  court. 

FIRST    SCHEDULE. 
ENACTMENTS    CONSOLIDATED. 

1905,  No.  58.  The  agricultural-implement  manufacturer,  importa- 
tion, and  sale  act.  1905. 

1900,  No.  21.  The  agricultural-implement  manufacture,  importa- 
tion, and  sale  act,  extension  act,  1906. 

1907.  No.  30.  The  agricultural-implement  manufacture.  imi>orta- 
tion,  and  sale  act,  1907. 

1907,  No.  34.  The  flour  and  other  products  monopoly  prevention 
act,  1907. 


432  TRUSTS  IN  FOREIGN   COUNTRIES. 

Sees       2       T 

1905,    Not'  58;  SECOND    SCHEDULE, 

schedule. 

IMPLEMENTS     TO     WHICH     PABT     I     OF     THIS     ACT     RELATES. 

Plows  of  all  kinds  over  1£  hundredweight. 
Tine  harrows. 
Disk  harrows. 

Drills,  combined  grain,  seed,  and  manure,  10  coulters  and  over. 
Drills,  combined  grain,  seed,  and  manure,  10  coulters. 
Drills,  grain. 

Rollers,  land  and  Cambridge,  over  7  hundredweight. 
Cultivators  and  grubbers,  over  2  hundredweight. 
Chaff  cutters,  9-inch  mouth  and  over. 
Self-bagging  chaff  cutters. 
Seed  cleaners. 

(New  Zealand  Consolidated  Statutes,  Appendix  D,  Vol.  IV,  pp. 
283  to  287.) 

[1908,  No.  236.] 

Title.  AN  ACT  To  amend  the  monopoly  prevention  act,  1908. 

[Oct.  10,  1908.] 

Be  it  enacted  ~by  the  General  Assembly  of  New  Zealand 
in  Parliament  assembled,  and  ~by  the  authority  of  the 
same,  as  follows: 
Short  title.       i.  This  act  may  be  cited  as  the  "  monopoly  prevention 

amendment  act,  1908." 

ac?SS£d3i.of     2-   (*)   Part  I  of  the  monopoly  prevention  act,  1908, 
shall  continue  in  operation  until  the  31st  day  of  Decem- 
ber, 1910,  on  which  day  it  shall  be  deemed  to  be  repealed. 
Repeal.  (2)   Section  13  of  the  monoply  prevention  act.  1908, 

is  hereby  repealed. 

(New  Zealand  Statutes,  1908,  No.  236,  p.  110.) 

[1907,  No.  34.] 

Title.  AN  ACT  To  prevent  the  establishment  of  monopolies  in  the  sale 

of  flour  and  other  products. 

[Nov.  19,  1907.] 

Be  it  enacted  ~by  the  General  Assembly  of  Neix  Zealand 
in  Parliament  assembled,  and  "by  the  authority  of  the 
same,  as  follows : 

Short    title.         L    Thig  a(,t  may  be  cited  ag  the  cc  flour  an(j  other  prod. 

ucts  monopoly  prevention  act,  1907." 


NEW   ZEALAND.  433 

2.  In  this  act  "  the  court "  means  the  court  of  arbitra-  interpretation, 
tion  under  the  industrial  conciliation  and  arbitration  act, 

1905. 

3.  Notwithstanding  anything  contained   in  the  tariff ^^jourmay^be 
act,  1907,  it  shall  be  lawful  for  the  governor,  at  any  time  customs  duty, 
and  from  time  to  time,  on  the  recommendation  of  the 

court  made  in  accordance  with  this  act,  to  declare,  by 
order  in  council  gazetted,  that  on  and  after  a  date  to  be 
specified  in  such  order  in  council  flour  imported  into  New 
Zealand  shall  be  admitted  free  of  all  duties  of  customs, 
and  so  long  as  any  such  order  in  council  remains  in  force 
flour  shall  be  exempt  from  such  duties  accordingly. 

4.  Any  such  order  in  council  may  be  revoked  by  the  co°n^f  erremIIt1! 
governor  at  any  time  as  from  a  day  to  be  specified  in  the  {£?  revokedmay 
order  in  council  revoking  the  same,  not  being  earlier  than 

three  months  from  the  gazetting  of  the  last-mentioned 
order  in  council. 

5.  The  court  may  from  time  to  time,  at  the  direction  of  in^ISJ*  a™  %o 
the  governor,  make  an  inquiry  as  to  whether  the  whole- price  of  flour* 
sale  market  price  of  flour  in  New  Zealand  is  unreasonably 

high ;  and  if  on  such  inquiry  the  said  court  finds  that  such 
price  is,  or  has  at  any  time  since  the  receipt  of  such  direc- 
tion from  the  governor  been,  unreasonably  high,  the  said 
court  shall  recommend  the  governor  to  exercise  the  powers 
conferred  upon  him  by  section  3  of  this  act. 

6.  For  the  purposes  of  such  inquiry  the  price  of  flour 
shall  be  deemed  to  be  unreasonably  high — 

(«)  If  the  average  price  of  flour  in  New  Zealand  is, 
relatively  to  the  price  of  wheat  in  New  Zealand,  higher 
than  the  average  price  of  flour  in  Australia  relatively  to 
the  average  price  of  wheat  in  Australia,  unless  in  the 
opinion  of  the  court  the  additional  price  in  New  Zealand 
is  justified  by  additional  cost  of  production ;  or 

(&)  If  the  average  price  of  wheat  in  New  Zealand  has, 
by  reason  of  any  combination  among  the  holders  of  stocks 
of  wheat,  or  by  reason  of  any  complete  or  partial  monop- 
oly established  by  any  such  holder,  been  raised  above  the 
price  which  would  be  determined  by  unrestricted  compe- 
tition. 

7.  (1)  The  provisions  of  sections  3,  4,  and  5  of  this  act  alstcto  wheat.1* 
shall  also  apply  to  wheat  in  the  same  manner  as  to  flour. 

(2)   For  the  purpose  of  any  inquiry  by  the  court  under 

the  authority  of  this  act,  the  price  of  wheat  shall  be 

deemed  to  be  unreasonably  high  if  the  average  wholesale 

price  in  New  Zealand  has,  by  reason  of  any  combination 

16491—13 28 


434  LAWS    ON    TBUSTS   AND    MONOPOLIES. 

among  the  holders  of  stocks  or  by  reason  of  any  com- 
plete or  partial  monopoly  established  by  any  such  holder, 
been  raised  above  the  price  which  would  be  determined 
by  unrestricted  competition. 

aisoCtto°  poK     8-   (1)  The  provisions  of  sections  3,  4,  and  5  of  this  act 
toe8'  shall  also  apply  to  potatoes  in  the  same  manner  as  to 

flour. 

(2)  For  the  purpose  of  any  inquiry  by  the  court  under 
the  authority  of  this  act,  the  price  of  potatoes  shall  be 
deemed  to  be  unreasonably  high— 

(a)  If  the  average  wholesale  price  in  New  Zealand 
exceeds  £7  per  ton ;  or 

( b )  If  the  average  wholesale  price  in  New  Zealand  has, 
by  reason  of  any  combination  among  the  holders  of  stocks 
of  potatoes  or  by  reason  of  any  complete  or  partial  mo- 
nopoly established  by  any  such  holder,  been  raised  above 
the  price  which  would  be  determined  by  unrestricted 
competition. 

9.  The  average  price  in  New  Zealand  of  any  of  the 
aforesaid  articles  shall  be  determined  by  the  said  court 
for  the  purposes  of  this  act  by  reference  to  the  ordinary 
market  price  for  the  time  being  in  Invercargill,  Dune- 
din,  Timaru,  Oamaru,  Christchurch,  Wellington,  and 
Auckland.  The  average  price  in  Australia  of  any  of 
the  aforesaid  articles  shall  be  likewise  determined  by  ref- 
erence to  the  ordinary  market  price  for  the  time  being  in 
Adelaide,  Sydney,  and  Melbourne. 

10-  (1)  In  making  any  inquiry  under  the  authority  of 
commission.  ^^  &(^  ^  cour^  ^^  fa  Deemed  to  be  a  commission 

within  the  commissioners  act,  1903,  and  shall  have  all 
the  powers  conferred  upon  commissioners  by  that  act, 
and  shall  be  subject  to  all  the  provisions  of  that  act 
accordingly. 

(2)  In  making  any  such  inquiry  the  said  court  may 
receive  and  act  on  any  evidence  which  it  thinks  fit, 
whether  the  same  is  legally  admissible  in  a  court  of  law 
or  not. 

tifeeo?  aegSrei?S-      11.  .(1)    For  the  purposes  of  this  act  there  shall  be 
torai  asocietaes  added  to  the  court  one  additional  member  thereof,  to  be 
e?  thea<£urt.ber  appointed  by  the  governor  from  time  to  time  in  the  case 
of  any  inquiry  under  this  act,  on  the  recommendation  of 
a  majority  of  the  societies  incorporated  under  the  agri- 
cultural and  pastoral  societies  act,  1877. 

(2)  The  member  so  appointed  shall  be  deemed  to  be 
a  member  of  the  said  court  for  the  purpose  of  the  inquiry 


NEW   ZEALAND. 


435 


in  respect  of  which  he  was  so  appointed,  but  for  no  other 
purpose  whatsoever. 

(3)  The  recommendation  of  the  said  societies  shall  be 
made  in  such  manner  as  is  prescribed  by  regulations  made 
by  the  governor  in  council. 

(4)  If  the  said  societies  fail  to  make  any  recommenda- 
tion in  accordance  with  such  regulations,  the  governor 
may  appoint  as  such  additional  member  of  the  said  court 
any  person  whom  he  thinks  fit. 

12.  (1)  In  the  case  of  any  inquiry  under  this  act  the 
court  may  exercise  its  powers  and  functions  at  any  sitting 
thereof  at  which  there  are  present  three  members,  includ- 
ing the  judge  of  the  said  court. 

(2)  In  the  case  of  any  division  of  opinion,  if  the  mem- 
bers of  the  said  court  who  are  present  are  equally  divided 
in  opinion,  the  decision  of  the  said  judge  shall  be  deemed 
to  be  the  decision  of  the  court. 

(Xew  Zealand  Statutes,  7  Edw.  VII.  1907,  pp.  137  to 
139.) 

[1907,  No.  30.]  ; 

AN  ACT  To  amend  the  agricultural-implement  manufacture,  im- 
portation, and  sale  net.  1905,  and  to  continue  the  operation 
thereof. 

[Nov.  13,  1907.] 

Be  it  enacted  by  the  General  Assembly  of  New  Zealand, 
in  Parliament  assembled,  and  by  the  authority  of  the 
same,  as  follows: 

1.  This  act  may  be  cited  as  the  "  agricultural-imple- 
ment manufacture,  importation,  and  sale  act,  1907." 

2.  Section  2  of  the  agricultural-implement  manufac- 
ture, importation,  and  sale   act  extension  act.   1906,  is 
hereby  amended  by  omitting  the  word  "  seven  "  and  sub- 
stituting the  word  "  eight.'' 

3.  Section  9  of  the  agricultural-implement  manufac- 
ture, importation,  and  sale  act,  1905,  is  hereby  amended 
by  omitting  the  words  "of  British  manufacture"  and 
substituting   the   words   "  manufactured   in   the   United 
Kingdom." 

4.  The  board   constituted   by   the   last-mentioned   act 
may  exercise  its  powers  and  functions  at  any  meeting  at 
which  the  judge  of  the  court  of  arbitration  and  at  least 
three  other  members  of  the  board  are  present. 

5.  The  report  of  the  board  shall  be  laid  before  Parlia- 
ment within  10  days  after  its  presentation  to  the  minis- 
ter of  customs  if  Parliament  is  then  sitting,  and  if  not, 


Quorum. 


Title. 


Short  title. 


Act  of  1906 
extended. 


Sec.  9  of  act 
of  1905  amend- 


Quorum  of  ag- 
ricultural-im- 
p  1  e  m  e  n  t  in- 
quiry board. 


Report  of 
board  to  be 
presented  to 
Parliament. 


436  LAWS    ON    TRUSTS    AND    MONOPOLIES. 

then  within  10  days  after  the  commencement  of  the  next 
ensuing  session. 

(New  Zealand  Statutes,  7  Edw.  VII,  190T,  p.  129.) 

[1906,   No.  21.] 

Title.  AN  ACT  T<>  revive  "the  agricultural-implement  manufacture,  im- 

portation, and  sale  act,  1905." 

[Oct.  23,  1906.] 

Be  it  enacted  by  the  General  Assembly  of  New  Zealand, 
in  Parliament  assembled*  and  by  the  authority  of  the 
sawie,  ax  follows: 

snort  title.  L  The  Short  title  of  this  act  is  "  The  agricultural- 
implement  manufacture,  importation,  and  sale  act  exten- 
sion act.  1906." 

ofa?ttlnuatl°n  2-  I1)  The  agricultural-implement  manufacture,  im- 
portation, and  sale  act,  1905,  shall  continue  in  operation 
and  be  deemed  to  have  continued  in  operation  as  if  sec- 
tion 13  thereof  had  not  been  passed  until  the  31st  day  of 
December.  1907. 

Repeal.  (2)  The  said  section  13  is  hereby  repealed. 

(New  Zealand  Statutes,  1906,  No.  21,  p.  71.) 

[1905,  No.  58.] 

Title.  AN  ACT  To  regulate  and  control  the  manufacture  and  sale  of  cer- 

tain agricultural  implements  within  New  Zealand  and  the  im- 
portation of  the  same  implements  from  foreign  countries. 

[Oct.  31,  1905.] 

Be  it  enacted  by  the  General  Assembly  of  New  Zealand 
in  Parliament  assembled,  and  by  the  authority  of  the 
same,  as  follows-' 

short  title.  i.  The  short  title  of  this  act  is  "  The  agricultural  im- 
plement manufacture,  importation,  and  sale  act,  1905." 

tation.erpre~  2-  *n  tnis  act?  if  not  inconsistent  with  the  context, 
"  commissioner "  means  the  commissioner  of  trade  and 
customs ;  "  implements  "  means  the  implements,  machines, 
and  appliances  specified  in  the  schedule  hereto. 

to  IS1  compiled1  3-  (1)  As  soon  as  practicable  after  the  passing  of  this 
act  the  commissioner  shall  cause  to  be  compiled  a  state- 
ment showing  in  the  case  of  each  implement  its  descrip- 
tion, the  nature  and  quality  of  the  materials  used  in 
its  construction,  a*nd  the  price  current  on  the  passing  of 
this  act. 

(2)  Such  statement  shall  be  published  in  the  Gazette. 

unfai?plcompef     4-  ^n  complaint  to  the  commissioner  by  any  two  or 

tition.  more  manufacturers  in  New  Zealand  of  any  implement 


NEW  ZEALAND.  437 

that  the  price  of  any  implement  on  importation  into  New 
Zealand  has  been  materially  reduced,  and  that  competi- 
tion on  unfair  lines  is  being  carried  on  by  importers  of 
implements  from  foreign  countries,  he  shall  summon  the 
board  hereinafter  constituted  and  refer  the  matter  of  such 
complaint  to  it  for  report. 

5  (1)  There  is  hereby  constituted  a  board  called  "  the  tuf^ard  constl" 
agricultural  implement  inquiry  board,"  consisting  of — 

The  president  of  the  arbitration  court,  who  shall  be 
chairman ; 

The  president  for  the  time  being  of  the  Farmers' 
Union ; 

The  president  of  the  Industrial  Association  of  Canter- 
bury; 

Some  person  appointed  by  the  governor  on  the  recom- 
mendation of  the  trades  and  labor  councils;  and 

Some  person  appointed  by  the  governor  on  the  recom- 
mendation of  the  agricultural  and  pastoral  associations. 

(2)  The  members  of  the  board  appointed  by  the  gov- 
ernor shall  be  appointed  in  the  same  manner  as  members 
of  the  arbitration  court  (other  than  the  president)  are 
appointed. 

6.  (1)  The  board  on  being  summoned  by  the  commis-  bol^ulry     by 
sioner  shall  inquire  with  as  little  delay  as  possible  into 

the  matter  referred  to  it  in  such  manner  as  it  thinks  fit, 
and  for  the  purposes  of  such  inquiry  shall  have  and 
may  exercise  all  the  powers  that  the  arbitration  court  has 
in  respect  of  industrial  disputes. 

(2)  The  board  shall  report  in  writing  to  the  commis- 
sioner the  result  of  its  inquiry,  and  shall  state  whether 
or  not  in  its  opinion  the  price  of  any  implement  imported 
into  New  Zealand  has  been  materially  reduced  below  that 
specified  in  the  statement  mentioned  in  section  3  hereof, 
and  may  recommend  that  relief  be  granted  in  the  manner 
hereinafter  appearing. 

7.  (1)  If  at  any  time  after  the  passing  of  this  act  the  lmDJ^  Sa^ 
manufacturers  of  implements  in  New  Zealand  agree  to  Zealand  manu- 
reduce  the  price  of  the  whole  of  the  implements  men-  auce  prices, 
tioned  in  the  schedule  hereto,  or  not  less  than  a  moiety 

thereof,  to  at  least  20  per  cent  below  that  specified  in  the 
statement  mentioned  in  section  3  hereof,  and  notify  the 
commissioner  of  such  agreement,  he  shall  summon  'the 
board  and  refer  the  matter  to  it  for  report. 

(2)  The  board  shall  in  like  manner  make  inquiry  into 
the  matter,  and  report  in  writing  to  the  commissioner 
whether  or  not,  in  its  opinion,  it  is  advisable  for  the  pro- 


438  LAWS    OK"    TRUSTS    AND    MONOPOLIES. 

tection  of  the  industry  in  New  Zealand  that  relief  be 
granted  as  hereinafter  mentioned. 
Power  to  i   8.  (1)  In  anv  case  where  the  board  recommends  that 

grant  DODUB.  •.   . 

relief  be  granted  it  shall  be  lawful  for  the  commissioner 
to  grant  to  the  manufacturers  of  implements  in  New 
Zealand  such  bonus,  not  exceeding  33  per  cent,  as  he 
cleems  necessary  to  enable  manufacturers  to  compete  with 
importers  of  such  implements. 

1  (2)  The  right  to  such  bonus  shall  be  subject  to  such 
terms  and  conditions  as  the  governor  in  council  thinks  fit 
io  impose. 
9.  For  the  purposes  of  this  act  implements  of  British 

facture.  manufacture  shall  be  deemed  to  be  manufactured  in  New 

Zealand,  and  the  importers  of  such  implements  shall  be 
deemed  to  be  manufacturers  thereof  in  New  Zealand. 

refundwduty  on      10.   (1)   Whenever  it  is  proved  to  the  satisfaction  of 

rfa£in  mate  the  collector  that  duty-paid  materials  have  been  used  in 
the  construction  of  any  implement,  he  shall  refund  to  the 
manufacturer  of  such  implement  the  amount  of  duty  paid 
on  the  materials  so  used. 

(2)  For  the  purposes  of  this  section  materials  include 
such  parts  of  implements  as  can  not  advantageously  be 
manufactured  in  New  Zealand. 

raferi81'  11.  This  act  shall  be  deemed  to  be  incorporated  with 

"  the  customs  laws  consolidation  act,  1882,"  and  its 
amendments. 

Regulations.  12  The  governor  may  from  time  to  time,  by  order  in 
council  gazetted,  make  regulations  necessary  for  the  car- 
rying out  of  this  act. 

acDuration  of  <  lg    Thig  act  ^^  continue  in  operation  till  the  1st 

day  of  August,  1906,  on  which  day  it  shall  be  deemed  to 
be  repealed. 

Schedule.  SCHEDULE. 

IMPLEMENTS    TO    WHICH    THIS    ACT    RELATES. 

Plows  of  all  kinds  over  1*  hundredweight. 

Tine  harrows. 

Disk  harrows. 

Drills,  combined  grain,  seed,  and  manure,  10  colters  and  over.  . 

Drills,  combined  grain,  seed,  and  manure,  10  colters. 

Drills,  grain. 

Rollers,  land  and  Cambridge,  over  7  hundredweight. 

Cultivators  and  grubbers,  over  2  hundredweight. 

Chaff  cutters.  9-inch  mouth  and  over. 

Self -bagging  chaff  cutters. 

Seed  cleaners. 

(New  Zealand  Statutes,  5  Edw.  VII.  1905,  pp.  601-603.) 

o 


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